Document and Entity Information
Document and Entity Information | 3 Months Ended |
Mar. 31, 2021shares | |
Document and Entity Information | |
Document Type | 10-Q |
Document Transition Report | false |
Document Quarterly Report | true |
Document Period End Date | Mar. 31, 2021 |
Entity File Number | 1-2189 |
Entity Registrant Name | ABBOTT LABORATORIES |
Entity Tax Identification Number | 36-0698440 |
Entity Incorporation, State or Country Code | IL |
Entity Address, State or Province | IL |
Entity Address, Address Line One | 100 Abbott Park Road |
Entity Address, City or Town | Abbott Park |
Entity Address, Postal Zip Code | 60064-6400 |
City Area Code | 224 |
Local Phone Number | 667-6100 |
Title of 12(b) Security | Common Shares, Without Par Value |
Entity Current Reporting Status | Yes |
Entity Interactive Data Current | Yes |
Entity Filer Category | Large Accelerated Filer |
Entity Small Business | false |
Entity Emerging Growth Company | false |
Entity Shell Company | false |
Entity Common Stock, Shares Outstanding | 1,776,820,148 |
Entity Central Index Key | 0000001800 |
Current Fiscal Year End Date | --12-31 |
Document Fiscal Year Focus | 2021 |
Document Fiscal Period Focus | Q1 |
Amendment Flag | false |
New York Stock Exchange | |
Document and Entity Information | |
Security Exchange Name | NYSE |
Trading Symbol | ABT |
Chicago Stock Exchange | |
Document and Entity Information | |
Security Exchange Name | CHX |
Condensed Consolidated Statemen
Condensed Consolidated Statement of Earnings - USD ($) shares in Thousands, $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Condensed Consolidated Statement of Earnings | ||
Net sales | $ 10,456 | $ 7,726 |
Cost of products sold, excluding amortization of intangible assets | 4,401 | 3,281 |
Amortization of intangible assets | 509 | 561 |
Research and development | 654 | 578 |
Selling, general and administrative | 2,783 | 2,548 |
Total operating cost and expenses | 8,347 | 6,968 |
Operating earnings | 2,109 | 758 |
Interest expense | 135 | 139 |
Interest (income) | (11) | (18) |
Net foreign exchange (gain) loss | 3 | 5 |
Other (income) expense, net | (61) | (1) |
Earnings from continuing operations before tax | 2,043 | 633 |
Tax expense on earnings from continuing operations | 250 | 89 |
Earnings from continuing operations | 1,793 | 544 |
Earnings from discontinued operations, net of tax | 20 | |
Net Earnings | $ 1,793 | $ 564 |
Basic Earnings Per Common Share -- | ||
Continuing operations | $ 1 | $ 0.31 |
Discontinued operations | 0.01 | |
Net earnings | 1 | 0.32 |
Diluted Earnings Per Common Share -- | ||
Continuing operations | 1 | 0.30 |
Discontinued operations | 0.01 | |
Net earnings | $ 1 | $ 0.31 |
Average Number of Common Shares Outstanding Used for Basic Earnings Per Common Share | 1,776,842 | 1,768,901 |
Dilutive Common Stock Options | 14,661 | 11,677 |
Average Number of Common Shares Outstanding Plus Dilutive Common Stock Options | 1,791,503 | 1,780,578 |
Outstanding Common Stock Options Having No Dilutive Effect | 2,694 | 4,035 |
Condensed Consolidated Statem_2
Condensed Consolidated Statement of Comprehensive Income - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Dec. 31, 2020 | |
Condensed Consolidated Statement of Comprehensive Income | |||
Net Earnings | $ 1,793 | $ 564 | |
Foreign currency translation gain (loss) adjustments | (536) | (1,144) | |
Net actuarial gains (losses) and amortization of net actuarial (losses) and prior service (cost) and credits, net of taxes of $18 in 2021 and $15 in 2020 | 85 | 57 | |
Net gains (losses) for derivative instruments designated as cash flow hedges, net of taxes of $46 in 2021 and $48 in 2020 | 112 | 166 | |
Other comprehensive income (loss) | (339) | (921) | |
Comprehensive Income (Loss) | 1,454 | $ (357) | |
Supplemental Accumulated Other Comprehensive Income (Loss) Information, net of tax: | |||
Cumulative foreign currency translation (loss) adjustments | (5,395) | $ (4,859) | |
Net actuarial (losses) and prior service (cost) and credits | (3,786) | (3,871) | |
Cumulative gains (losses) on derivative instruments designated as cash flow hedges | (104) | (216) | |
Accumulated Other Comprehensive Income (Loss) | $ (9,285) | $ (8,946) |
Condensed Consolidated Statem_3
Condensed Consolidated Statement of Comprehensive Income (Parenthetical) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Condensed Consolidated Statement of Comprehensive Income | ||
Net actuarial gains (losses) and amortization of net actuarial (losses) and prior service (cost) and credits taxes | $ 18 | $ 15 |
Net gains (losses) for derivative instruments designated as cash flow hedges taxes | $ 46 | $ 48 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheet - USD ($) $ in Millions | Mar. 31, 2021 | Dec. 31, 2020 |
Current Assets: | ||
Cash and cash equivalents | $ 8,054 | $ 6,838 |
Short-term investments | 318 | 310 |
Trade receivables, less allowances of $475 in 2021 and $460 in 2020 | 6,096 | 6,414 |
Inventories: | ||
Finished products | 3,219 | 3,030 |
Work in process | 773 | 712 |
Materials | 1,395 | 1,270 |
Total inventories | 5,387 | 5,012 |
Prepaid expenses and other receivables | 1,962 | 1,867 |
Total Current Assets | 21,817 | 20,441 |
Investments | 832 | 821 |
Property and equipment, at cost | 18,697 | 18,793 |
Less: accumulated depreciation and amortization | 9,865 | 9,764 |
Net property and equipment | 8,832 | 9,029 |
Intangible assets, net of amortization | 14,181 | 14,784 |
Goodwill | 23,384 | 23,744 |
Deferred income taxes and other assets | 3,739 | 3,729 |
Total Assets | 72,785 | 72,548 |
Current Liabilities: | ||
Short-term borrowings | 199 | 213 |
Trade accounts payable | 4,066 | 3,946 |
Salaries, wages and commissions | 1,117 | 1,416 |
Other accrued liabilities | 5,247 | 5,165 |
Dividends payable | 801 | 798 |
Income taxes payable | 276 | 362 |
Current portion of long-term debt | 756 | 7 |
Total Current Liabilities | 12,462 | 11,907 |
Long-term debt | 17,489 | 18,527 |
Post-employment obligations, deferred income taxes and other long-term liabilities | 9,046 | 9,111 |
Commitments and Contingencies | ||
Shareholders' Investment: | ||
Preferred shares, one dollar par value Authorized - 1,000,000 shares, none issued | ||
Common shares, without par value Authorized - 2,400,000,000 shares Issued at stated capital amount - Shares: 2021: 1,982,205,491; 2020: 1,981,156,896 | 24,023 | 24,145 |
Common shares held in treasury, at cost - Shares: 2021: 205,385,343; 2020: 209,926,622 | (9,845) | (10,042) |
Earnings employed in the business | 28,669 | 27,627 |
Accumulated other comprehensive income (loss) | (9,285) | (8,946) |
Total Abbott Shareholders' Investment | 33,562 | 32,784 |
Noncontrolling Interests in Subsidiaries | 226 | 219 |
Total Shareholders' Investment | 33,788 | 33,003 |
Total Liabilities and Shareholders' Investment | $ 72,785 | $ 72,548 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheet (Parenthetical) - USD ($) $ in Millions | Mar. 31, 2021 | Dec. 31, 2020 |
Condensed Consolidated Balance Sheet | ||
Trade receivables, allowances (in dollars) | $ 475 | $ 460 |
Preferred shares, par value (in dollars per share) | $ 1 | $ 1 |
Preferred shares, authorized shares | 1,000,000 | 1,000,000 |
Preferred shares, issued shares | 0 | 0 |
Common shares, authorized shares | 2,400,000,000 | 2,400,000,000 |
Common shares, issued shares | 1,982,205,491 | 1,981,156,896 |
Common shares held in treasury, shares | 205,385,343 | 209,926,622 |
Condensed Consolidated Statem_4
Condensed Consolidated Statement of Shareholders' Investment - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Increase (Decrease) in Shareholders' Investment | ||
Beginning of Year | $ 33,003 | |
Net Earnings | 1,793 | $ 564 |
Other comprehensive income (loss) | (339) | (921) |
End of Year | 33,788 | |
Common Shares: | ||
Increase (Decrease) in Shareholders' Investment | ||
Beginning of Year | 24,145 | 23,853 |
Issued under incentive stock programs | 47 | 53 |
Share-based compensation | 304 | 245 |
Issuance of restricted stock awards | (473) | (420) |
End of Year | 24,023 | 23,731 |
Common Shares Held in Treasury: | ||
Increase (Decrease) in Shareholders' Investment | ||
Beginning of Year | (10,042) | (10,147) |
Issued under incentive stock programs | 231 | 253 |
Purchased | (34) | (19) |
End of Year | (9,845) | (9,913) |
Earnings Employed in the Business: | ||
Increase (Decrease) in Shareholders' Investment | ||
Beginning of Year | 27,627 | 25,847 |
Net Earnings | 1,793 | 564 |
Cash dividends declared on common shares | (803) | (641) |
Effect of common and treasury share transactions | 52 | 21 |
End of Year | 28,669 | 25,786 |
Earnings Employed in the Business: | Impact of adoption of new accounting standards | ||
Increase (Decrease) in Shareholders' Investment | ||
End of Year | (5) | |
Accumulated Other Comprehensive Income (Loss): | ||
Increase (Decrease) in Shareholders' Investment | ||
Beginning of Year | (8,946) | (8,465) |
Other comprehensive income (loss) | (339) | (921) |
End of Year | (9,285) | (9,386) |
Noncontrolling Interests in Subsidiaries: | ||
Increase (Decrease) in Shareholders' Investment | ||
Beginning of Year | 219 | 213 |
Noncontrolling Interests' share of income, business combinations, net of distributions and share repurchases | 7 | (4) |
End of Year | $ 226 | $ 209 |
Condensed Consolidated Statem_5
Condensed Consolidated Statement of Shareholders' Investment (Parenthetical) - $ / shares | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Common Shares: | ||
Increase (Decrease) in Shareholders' Investment | ||
Balance at beginning of period (in shares) | 1,981,156,896 | 1,976,855,085 |
Issued under incentive stock programs (in shares) | 1,048,595 | 1,257,416 |
Balance at end of period (in shares) | 1,982,205,491 | 1,978,112,501 |
Common Shares Held in Treasury: | ||
Increase (Decrease) in Shareholders' Investment | ||
Balance at beginning of period (in shares) | 209,926,622 | 214,351,838 |
Issued under incentive stock programs (in shares) | 4,818,787 | 5,333,626 |
Purchased (in shares) | 277,508 | 248,963 |
Balance at end of period (in shares) | 205,385,343 | 209,267,175 |
Earnings Employed in the Business: | ||
Increase (Decrease) in Shareholders' Investment | ||
Cash dividends declared per common share | $ 0.45 | $ 0.36 |
Condensed Consolidated Statem_6
Condensed Consolidated Statement of Cash Flows - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Cash Flow From (Used in) Operating Activities: | ||
Net earnings | $ 1,793 | $ 564 |
Adjustments to reconcile net earnings to net cash from operating activities - | ||
Depreciation | 425 | 267 |
Amortization of intangible assets | 509 | 561 |
Share-based compensation | 288 | 233 |
Trade receivables | 165 | (104) |
Inventories | (537) | (437) |
Other, net | (6) | (369) |
Net Cash From Operating Activities | 2,637 | 715 |
Cash Flow From (Used in) Investing Activities: | ||
Acquisitions of property and equipment | (397) | (360) |
Acquisitions of businesses and technologies, net of cash acquired | (15) | |
Sales (purchases) of other investment securities, net | (14) | (36) |
Other | 4 | 3 |
Net Cash (Used in) Investing Activities | (422) | (393) |
Cash Flow From (Used in) Financing Activities: | ||
Net borrowings (repayments) of short-term debt and other | 24 | 51 |
Repayments of long-term debt | (2) | (1) |
Purchases of common shares | (275) | (236) |
Proceeds from stock options exercised | 86 | 89 |
Dividends paid | (800) | (638) |
Net Cash (Used in) Financing Activities | (967) | (735) |
Effect of exchange rate changes on cash and cash equivalents | (32) | (70) |
Net Increase (Decrease) in Cash and Cash Equivalents | 1,216 | (483) |
Cash and Cash Equivalents, Beginning of Year | 6,838 | 3,860 |
Cash and Cash Equivalents, End of Period | $ 8,054 | $ 3,377 |
Basis of Presentation
Basis of Presentation | 3 Months Ended |
Mar. 31, 2021 | |
Basis of Presentation | |
Basis of Presentation | Note 1 — Basis of Presentation The accompanying unaudited, condensed consolidated financial statements have been prepared pursuant to rules and regulations of the Securities and Exchange Commission and, therefore, do not include all information and footnote disclosures normally included in audited financial statements. However, in the opinion of management, all adjustments (which include only normal adjustments) necessary to present fairly the results of operations, financial position and cash flows have been made. It is suggested that these statements be read in conjunction with the financial statements included in Abbott’s Annual Report on Form 10-K for the year ended December 31, 2020. The condensed consolidated financial statements include the accounts of the parent company and subsidiaries, after elimination of intercompany transactions. |
New Accounting Standards
New Accounting Standards | 3 Months Ended |
Mar. 31, 2021 | |
New Accounting Standards | |
New Accounting Standards | 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 |
Revenue
Revenue | 3 Months Ended |
Mar. 31, 2021 | |
Revenue | |
Revenue | Note 3 — Revenue Abbott’s revenues are derived primarily from the sale of a broad line of health care products under short-term receivable arrangements. Abbott has four reportable segments: Established Pharmaceutical Products, Diagnostic Products, Nutritional Products, and Medical Devices. The following table provides revenues by sales category: Three Months Ended March 31, 2021 Three Months Ended March 31, 2020 (in millions) U.S. Int’l Total U.S. Int’l Total Established Pharmaceutical Products — Key Emerging Markets $ — $ 821 $ 821 $ — $ 813 $ 813 Other — 249 249 — 231 231 Total — 1,070 1,070 — 1,044 1,044 Nutritionals — Pediatric Nutritionals 508 558 1,066 518 571 1,089 Adult Nutritionals 328 642 970 294 521 815 Total 836 1,200 2,036 812 1,092 1,904 Diagnostics — Core Laboratory 271 911 1,182 267 722 989 Molecular 175 272 447 65 74 139 Point of Care 92 37 129 103 35 138 Rapid Diagnostics 1,103 1,153 2,256 368 192 560 Total 1,641 2,373 4,014 803 1,023 1,826 Medical Devices — Rhythm Management 241 278 519 228 246 474 Electrophysiology 179 252 431 164 224 388 Heart Failure 145 49 194 152 51 203 Vascular 219 416 635 230 395 625 Structural Heart 169 208 377 136 182 318 Neuromodulation 145 39 184 137 40 177 Diabetes Care 253 727 980 186 566 752 Total 1,351 1,969 3,320 1,233 1,704 2,937 Other 10 6 16 8 7 15 Total $ 3,838 $ 6,618 $ 10,456 $ 2,856 $ 4,870 $ 7,726 Remaining Performance Obligations As of March 31, 2021, the estimated revenue expected to be recognized in the future related to performance obligations that are unsatisfied (or partially unsatisfied) was approximately $3.8 billion in the Diagnostics segment and approximately $400 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 17 percent over the subsequent 12 months and the remainder thereafter. These performance obligations primarily reflect the future sale of reagents/consumables in contracts with minimum purchase obligations, extended warranty or service obligations related to previously sold equipment, and remote monitoring services related to previously implanted devices. Abbott has applied the practical expedient described in Accounting Standards Codification (ASC) 606-10-50-14 and has not included remaining performance obligations related to contracts with original expected durations of one year or less in the amounts above. Other Contract Assets and Liabilities Abbott discloses Trade receivables separately in the Condensed Consolidated Balance Sheet at the net amount expected to be collected. Contract assets primarily relate to Abbott’s conditional right to consideration for work completed but not billed at the reporting date. Contract assets at the beginning and 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 Unearned revenue from cash received during the period 174 Revenue recognized related to contract liability balance (163) Balance at March 31, 2021 $ 416 |
Supplemental Financial Informat
Supplemental Financial Information | 3 Months Ended |
Mar. 31, 2021 | |
Supplemental Financial Information | |
Supplemental Financial Information | Note 4 — Supplemental Financial Information Shares of unvested restricted stock that contain non-forfeitable rights to dividends are treated as participating securities and are included in the computation of earnings per share under the two-class method. Under the two-class method, net earnings are allocated between common shares and participating securities. Earnings from Continuing Operations allocated to common shares for the three months ended March 31, 2021 and 2020 were $1.785 billion and $541 million, respectively. Net earnings allocated to common shares for the three months ended March 31, 2021 and 2020 were $1.785 billion and $561 million, respectively. Earnings from discontinued operations, net of tax, in the first quarter 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 three months of 2021 includes $16 million of pension contributions and the payment of cash taxes of approximately $270 million. The first three months of 2020 includes $320 million of pension contributions and the payment of cash taxes of approximately $125 million. The following summarizes the activity for the first three months of 2021 related to the allowance for doubtful accounts as of March 31, 2021: (in millions) Allowance for Doubtful Accounts: Balance at December 31, 2020 $ 288 Provisions/charges to income 15 Amounts charged off and other deductions (8) Balance at March 31, 2021 $ 295 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 March 31, 2021 and December 31, 2020 are as follows: March 31, December 31, (in millions) 2021 2020 Long-term Investments: Equity securities $ 785 $ 776 Other 47 45 Total $ 832 $ 821 Abbott’s equity securities as of March 31, 2021, include $375 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 March 31, 2021 with a carrying value of $289 million that are accounted for under the equity method of accounting and other equity investments with a carrying value of approximately $105 million that do not have a readily determinable fair value. |
Changes in Accumulated Other Co
Changes in Accumulated Other Comprehensive Income (Loss) | 3 Months Ended |
Mar. 31, 2021 | |
Changes in Accumulated Other Comprehensive Income (Loss) | |
Changes in Accumulated Other Comprehensive Income (Loss) | Note 5 — Changes in Accumulated Other Comprehensive Income (Loss) The changes in accumulated other comprehensive income (loss), net of income taxes, are as follows: Three Months Ended 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) 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 (536) (1,144) 22 7 96 176 Amounts reclassified from accumulated other — — 63 50 16 (10) Net current period comprehensive income (loss) (536) (1,144) 85 57 112 166 Balance at March 31 $ (5,395) $ (6,068) $ (3,786) $ (3,483) $ (104) $ 165 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 11 for additional details. |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 3 Months Ended |
Mar. 31, 2021 | |
Goodwill and Intangible Assets | |
Goodwill and Intangible Assets | Note 6 — Goodwill and Intangible Assets The total amount of goodwill reported was $23.4 billion at March 31, 2021 and $23.7 billion at December 31, 2020. Foreign currency translation adjustments decreased goodwill by approximately $360 million in the first three months of 2021. The amount of goodwill related to reportable segments at March 31, 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 $16.3 billion for the Medical Devices segment. There was no reduction of goodwill relating to impairments in the first three months of 2021. The gross amount of amortizable intangible assets, primarily product rights and technology was $27.5 billion as of March 31, 2021 and $27.8 billion as of December 31, 2020, and accumulated amortization was $14.5 billion as of March 31, 2021 and $14.2 billion as of December 31, 2020. Foreign currency translation adjustments decreased intangible assets by $94 million in the first three months of 2021. Abbott’s estimated annual amortization expense for intangible assets is approximately $2.0 billion in 2021 and 2022, and $1.9 billion in 2023, 2024 , and 2025 . Indefinite-lived intangible assets, which relate to in-process R&D acquired in a business combination, were approximately $1.2 billion as of March 31, 2021 and December 31, 2020 . |
Restructuring Plans
Restructuring Plans | 3 Months Ended |
Mar. 31, 2021 | |
Restructuring Plans | |
Restructuring Plans | Note 7 — Restructuring Plans From 2017 to 2020, 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. No additional charges were recognized in the first three months of 2021. As of March 31, 2021, the accrued liabilities remaining in the Consolidated Balance Sheet related to these actions total $13 million and primarily represent severance obligations. From 2017 to 2020, Abbott management approved plans to streamline operations in order to reduce costs and improve efficiencies in various Abbott businesses including the nutritional, established pharmaceuticals and vascular businesses. In the first three months of 2021, charges of $1 million were recognized as Cost of products sold. The following summarizes the activity for the first three months of 2021 related to these restructuring actions and the status of the related accrual as of March 31, 2021: (in millions) Accrued balance at December 31, 2020 $ 70 Restructuring charges recorded in 2021 1 Payments and other adjustments (13) Accrued balance at March 31, 2021 $ 58 |
Incentive Stock Program
Incentive Stock Program | 3 Months Ended |
Mar. 31, 2021 | |
Incentive Stock Program | |
Incentive Stock Program | Note 8 — Incentive Stock Program In the first three months of 2021, Abbott granted 2,693,918 stock options, 478,490 restricted stock awards and 4,511,126 restricted stock units under its incentive stock program. At March 31, 2021, approximately 101 million shares were reserved for future grants. Information regarding the number of options outstanding and exercisable at March 31, 2021 is as follows: Outstanding Exercisable Number of shares 30,484,541 23,519,084 Weighted average remaining life ( years 6.2 5.4 Weighted average exercise price $ 62.17 $ 51.23 Aggregate intrinsic value ( in millions $ 1,769 $ 1,614 The total unrecognized share-based compensation cost at March 31, 2021 amounted to approximately $744 million which is expected to be recognized over the next three years . |
Financial Instruments, Derivati
Financial Instruments, Derivatives and Fair Value Measures | 3 Months Ended |
Mar. 31, 2021 | |
Financial Instruments, Derivatives and Fair Value Measures | |
Financial Instruments, Derivatives and Fair Value Measures | Note 9 — Financial Instruments, Derivatives and Fair Value Measures Certain Abbott foreign subsidiaries enter into foreign currency forward exchange contracts to manage exposures to changes in foreign exchange rates primarily for anticipated intercompany purchases by those subsidiaries whose functional currencies are not the U.S. dollar. These contracts, with gross notional amounts totaling $8.6 billion at March 31, 2021 and $8.1 billion at December 31, 2020 are designated as cash flow hedges of the variability of the cash flows due to changes in foreign exchange rates and are recorded at fair value. Accumulated gains and losses as of March 31, 2021 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 March 31, 2021 and December 31, 2020, Abbott held the gross notional amount of $10.2 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 $542 million and $577 million as of March 31, 2021 and December 31, 2020, 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 March 31, 2021 and December 31, 2020 to manage its exposure to changes in the fair value of fixed-rate debt. These contracts are designated as fair value hedges of the variability of the fair value of fixed-rate debt due to changes in the long-term benchmark interest rates. The effect of the hedge is to change a fixed-rate interest obligation to a variable rate for that portion of the debt. Abbott records the contracts at fair value and adjusts the carrying amount of the fixed-rate debt by an offsetting amount. The following table summarizes the amounts and location of certain derivative financial instruments as of March 31, 2021 and December 31, 2020: Fair Value - Assets Fair Value - Liabilities March 31, Dec. 31, March 31, Dec. 31, (in millions) 2021 2020 Balance Sheet Caption 2021 2020 Balance Sheet Caption Interest rate swaps designated as fair value hedges $ 141 $ 210 Deferred income taxes and other assets $ — $ — Post-employment obligations, deferred income taxes and other long-term liabilities Foreign currency forward exchange contracts: Hedging instruments 105 30 Prepaid expenses and other receivables 167 433 Other accrued liabilities Others not designated as hedges 76 60 Prepaid expenses and other receivables 92 65 Other accrued liabilities Debt designated as a hedge of net investment in a foreign subsidiary — — n/a 542 577 Long-term debt $ 322 $ 300 $ 801 $ 1,075 The following table summarizes the activity for foreign currency forward exchange contracts designated as cash flow hedges, debt designated as a hedge of net investment in a foreign subsidiary and certain other derivative financial instruments, as well as the amounts and location of income (expense) and gain (loss) reclassified into income for the three months ended March 31, 2021 and 2020. Gain (loss) Recognized in Income (expense) and Other Comprehensive Gain (loss) Reclassified Income (loss) into Income (in millions) 2021 2020 2021 2020 Income Statement Caption Foreign currency forward exchange contracts designated as cash flow hedges $ 134 $ 227 $ (23) $ 11 Cost of products sold Debt designated as a hedge of net investment in a 35 (8) — — n/a Interest rate swaps designated as fair value hedges n/a n/a (69) 168 Interest expense Gains of $49 million and losses of $165 million were recognized in the three months ended March 31, 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 March 31, 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. March 31, 2021 December 31, 2020 Carrying Fair Carrying Fair (in millions) Value Value Value Value Long-term Investment Securities: Equity securities $ 785 $ 785 $ 776 $ 776 Other 47 47 45 45 Total Long-term Debt (18,245) (21,046) (18,534) (22,809) Foreign Currency Forward Exchange Contracts: Receivable position 181 181 90 90 (Payable) position (259) (259) (498) (498) Interest Rate Hedge Contracts: Receivable position 141 141 210 210 The fair value of the debt was determined based on significant other observable inputs, including current interest rates. The following table summarizes the bases used to measure certain assets and liabilities at fair value on a recurring basis in the balance sheet: Basis of Fair Value Measurement Quoted Significant Prices in Other Significant Outstanding Active Observable Unobservable (in millions) Balances Markets Inputs Inputs March 31, 2021: Equity securities $ 391 $ 391 $ — $ — Interest rate swap derivative financial instruments 141 — 141 — Foreign currency forward exchange contracts 181 — 181 — Total Assets $ 713 $ 391 $ 322 $ — Fair value of hedged long-term debt $ 2,980 $ — $ 2,980 $ — Foreign currency forward exchange contracts 259 — 259 — Contingent consideration related to business combinations 67 — — 67 Total Liabilities $ 3,306 $ — $ 3,239 $ 67 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 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 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. |
Litigation and Environmental Ma
Litigation and Environmental Matters | 3 Months Ended |
Mar. 31, 2021 | |
Litigation and Environmental Matters | |
Litigation and Environmental Matters | Note 10 — Litigation and Environmental Matters Abbott has been identified as a potentially responsible party for investigation and cleanup costs at a number of locations in the United States and Puerto Rico under federal and state remediation laws and is investigating potential contamination at a number of company-owned locations. Abbott has recorded an estimated cleanup cost for each site for which management believes Abbott has a probable loss exposure. No individual site cleanup exposure is expected to exceed $4 million, and the aggregate cleanup exposure is not expected to exceed $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 $215 million to $250 million. The recorded accrual balance at March 31, 2021 for these proceedings and exposures was approximately $230 million. This accrual represents management’s best estimate of probable loss, as defined by FASB ASC No. 450, “Contingencies.” Within the next year, legal proceedings may occur that may result in a change in the estimated loss accrued by Abbott. While it is not feasible to predict the outcome of all such proceedings and exposures with certainty, management believes that their ultimate disposition should not have a material adverse effect on Abbott’s financial position, cash flows, or results of operations. |
Post-Employment Benefits
Post-Employment Benefits | 3 Months Ended |
Mar. 31, 2021 | |
Post-Employment Benefits | |
Post-Employment Benefits | Note 11 — Post-Employment Benefits Retirement plans consist of defined benefit, defined contribution, and medical and dental plans. Net 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 months ended March 31 for Abbott’s major defined benefit plans and post-employment medical and dental benefit plans is as follows: Defined Benefit Plans Medical and Dental Plans March 31, March 31, March 31, March 31, (in millions) 2021 2020 2021 2020 Service cost — benefits earned during the period $ 100 $ 85 $ 14 $ 12 Interest cost on projected benefit obligations 62 75 8 12 Expected return on plan assets (211) (192) (7) (7) Net amortization of: Actuarial loss, net 81 63 7 8 Prior service cost (credit) — — (7) (7) Net cost — continuing operations $ 32 $ 31 $ 15 $ 18 Abbott funds its domestic defined benefit plans according to IRS funding limitations. International pension plans are funded according to similar regulations. In the first three months of 2021 and 2020, $16 million and $320 million, respectively, were contributed to defined benefit plans. Contributions made to post-employment medical and dental plans in the first three months of 2020 were $11 million. No contributions were made to the post-employment medical and dental plans in the first three months of 2021. |
Taxes on Earnings
Taxes on Earnings | 3 Months Ended |
Mar. 31, 2021 | |
Taxes on Earnings | |
Taxes on Earnings | Note 12 — Taxes on Earnings Taxes on earnings from continuing operations reflect the estimated annual effective rates and include charges for interest and penalties. In the first three months of 2021 and 2020, taxes on earnings from continuing operations include approximately $80 million and $47 million, respectively, in excess tax benefits associated with share-based compensation. Earnings from discontinued operations, net of tax, in the first three 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 $50 million, including cash adjustments, within the next twelve months as a result of concluding various domestic and international tax matters. |
Segment Information
Segment Information | 3 Months Ended |
Mar. 31, 2021 | |
Segment Information | |
Segment Information | Note 13 — Segment Information Abbott’s principal business is the discovery, development, manufacture and sale of a broad line of health care products. Abbott’s products are generally sold directly to retailers, wholesalers, hospitals, health care facilities, laboratories, physicians’ offices and government agencies throughout the world. Abbott’s reportable segments are as follows: Established Pharmaceutical Products Nutritional Products Diagnostic Products Medical Devices 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. The cost of some corporate functions and the cost of certain employee benefits are charged to segments at predetermined rates that approximate cost. Remaining costs, if any, are not allocated to segments. In addition, intangible asset amortization is not allocated to operating segments, and intangible assets and goodwill are not included in the measure of each segment’s assets. The following segment information has been prepared in accordance with the internal accounting policies of Abbott, as described above, and is not presented in accordance with generally accepted accounting principles applied to the consolidated financial statements. Three Months Ended March 31 Net Sales to Operating (in millions) 2021 2020 2021 2020 Established Pharmaceutical Products $ 1,070 $ 1,044 $ 169 $ 181 Nutritional Products 2,036 1,904 467 459 Diagnostic Products 4,014 1,826 1,701 405 Medical Devices 3,320 2,937 1,007 803 Total Reportable Segments 10,440 7,711 3,344 1,848 Other 16 15 Net sales $ 10,456 $ 7,726 Corporate functions and benefit plans costs (114) (132) Net interest expense (124) (121) Share-based compensation (a) (288) (233) Amortization of intangible assets (509) (561) Other, net (b) (266) (168) Earnings from continuing operations before taxes $ 2,043 $ 633 (a) Approximately 50 percent of the annual net cost of share-based awards will typically be recognized in the first quarter due to the timing of the granting of share-based awards. (b) Other, net includes integration costs associated with the acquisition of St. Jude Medical and Alere, and restructuring charges. Other, net for the three months ended March 31, 2021 also includes costs related to certain litigation. |
New Accounting Standards (Polic
New Accounting Standards (Policies) | 3 Months Ended |
Mar. 31, 2021 | |
New Accounting Standards | |
Recently Adopted 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 |
Revenue (Tables)
Revenue (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Revenue | |
Schedule of reportable segment included under sales category | Three Months Ended March 31, 2021 Three Months Ended March 31, 2020 (in millions) U.S. Int’l Total U.S. Int’l Total Established Pharmaceutical Products — Key Emerging Markets $ — $ 821 $ 821 $ — $ 813 $ 813 Other — 249 249 — 231 231 Total — 1,070 1,070 — 1,044 1,044 Nutritionals — Pediatric Nutritionals 508 558 1,066 518 571 1,089 Adult Nutritionals 328 642 970 294 521 815 Total 836 1,200 2,036 812 1,092 1,904 Diagnostics — Core Laboratory 271 911 1,182 267 722 989 Molecular 175 272 447 65 74 139 Point of Care 92 37 129 103 35 138 Rapid Diagnostics 1,103 1,153 2,256 368 192 560 Total 1,641 2,373 4,014 803 1,023 1,826 Medical Devices — Rhythm Management 241 278 519 228 246 474 Electrophysiology 179 252 431 164 224 388 Heart Failure 145 49 194 152 51 203 Vascular 219 416 635 230 395 625 Structural Heart 169 208 377 136 182 318 Neuromodulation 145 39 184 137 40 177 Diabetes Care 253 727 980 186 566 752 Total 1,351 1,969 3,320 1,233 1,704 2,937 Other 10 6 16 8 7 15 Total $ 3,838 $ 6,618 $ 10,456 $ 2,856 $ 4,870 $ 7,726 |
Schedule of changes in contract liabilities | (in millions) Contract Liabilities: Balance at December 31, 2020 $ 405 Unearned revenue from cash received during the period 174 Revenue recognized related to contract liability balance (163) Balance at March 31, 2021 $ 416 |
Supplemental Financial Inform_2
Supplemental Financial Information (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Supplemental Financial Information | |
Summary of activity of allowance for doubtful accounts | (in millions) Allowance for Doubtful Accounts: Balance at December 31, 2020 $ 288 Provisions/charges to income 15 Amounts charged off and other deductions (8) Balance at March 31, 2021 $ 295 |
Schedule of long-term investments | March 31, December 31, (in millions) 2021 2020 Long-term Investments: Equity securities $ 785 $ 776 Other 47 45 Total $ 832 $ 821 |
Changes in Accumulated Other _2
Changes in Accumulated Other Comprehensive Income (Loss) (Loss) (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Changes in Accumulated Other Comprehensive Income (Loss) | |
Schedule of accumulated other comprehensive income (loss), net of taxes | 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) 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 (536) (1,144) 22 7 96 176 Amounts reclassified from accumulated other — — 63 50 16 (10) Net current period comprehensive income (loss) (536) (1,144) 85 57 112 166 Balance at March 31 $ (5,395) $ (6,068) $ (3,786) $ (3,483) $ (104) $ 165 |
Restructuring Plans (Tables)
Restructuring Plans (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Restructuring Plans | |
Summary of restructuring activity | (in millions) Accrued balance at December 31, 2020 $ 70 Restructuring charges recorded in 2021 1 Payments and other adjustments (13) Accrued balance at March 31, 2021 $ 58 |
Incentive Stock Programs (Table
Incentive Stock Programs (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Incentive Stock Program | |
Schedule of stock options outstanding and exercisable | Outstanding Exercisable Number of shares 30,484,541 23,519,084 Weighted average remaining life ( years 6.2 5.4 Weighted average exercise price $ 62.17 $ 51.23 Aggregate intrinsic value ( in millions $ 1,769 $ 1,614 |
Financial Instruments, Deriva_2
Financial Instruments, Derivatives and Fair Value Measures (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Financial Instruments, Derivatives and Fair Value Measures | |
Summary of the amounts and location of certain derivative financial instruments | Fair Value - Assets Fair Value - Liabilities March 31, Dec. 31, March 31, Dec. 31, (in millions) 2021 2020 Balance Sheet Caption 2021 2020 Balance Sheet Caption Interest rate swaps designated as fair value hedges $ 141 $ 210 Deferred income taxes and other assets $ — $ — Post-employment obligations, deferred income taxes and other long-term liabilities Foreign currency forward exchange contracts: Hedging instruments 105 30 Prepaid expenses and other receivables 167 433 Other accrued liabilities Others not designated as hedges 76 60 Prepaid expenses and other receivables 92 65 Other accrued liabilities Debt designated as a hedge of net investment in a foreign subsidiary — — n/a 542 577 Long-term debt $ 322 $ 300 $ 801 $ 1,075 |
Schedule of derivatives gain (loss) in OCI and earnings | Gain (loss) Recognized in Income (expense) and Other Comprehensive Gain (loss) Reclassified Income (loss) into Income (in millions) 2021 2020 2021 2020 Income Statement Caption Foreign currency forward exchange contracts designated as cash flow hedges $ 134 $ 227 $ (23) $ 11 Cost of products sold Debt designated as a hedge of net investment in a 35 (8) — — n/a Interest rate swaps designated as fair value hedges n/a n/a (69) 168 Interest expense |
Schedule of carrying values and fair values of certain financial instruments | March 31, 2021 December 31, 2020 Carrying Fair Carrying Fair (in millions) Value Value Value Value Long-term Investment Securities: Equity securities $ 785 $ 785 $ 776 $ 776 Other 47 47 45 45 Total Long-term Debt (18,245) (21,046) (18,534) (22,809) Foreign Currency Forward Exchange Contracts: Receivable position 181 181 90 90 (Payable) position (259) (259) (498) (498) Interest Rate Hedge Contracts: Receivable position 141 141 210 210 |
Schedule of assets and liabilities measured at fair value on a recurring basis | Basis of Fair Value Measurement Quoted Significant Prices in Other Significant Outstanding Active Observable Unobservable (in millions) Balances Markets Inputs Inputs March 31, 2021: Equity securities $ 391 $ 391 $ — $ — Interest rate swap derivative financial instruments 141 — 141 — Foreign currency forward exchange contracts 181 — 181 — Total Assets $ 713 $ 391 $ 322 $ — Fair value of hedged long-term debt $ 2,980 $ — $ 2,980 $ — Foreign currency forward exchange contracts 259 — 259 — Contingent consideration related to business combinations 67 — — 67 Total Liabilities $ 3,306 $ — $ 3,239 $ 67 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 |
Post-Employment Benefits (Table
Post-Employment Benefits (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Post-Employment Benefits | |
Schedule of components of the net periodic benefit cost for the entity's major defined benefit plans and post-employment medical and dental benefit plans | Defined Benefit Plans Medical and Dental Plans March 31, March 31, March 31, March 31, (in millions) 2021 2020 2021 2020 Service cost — benefits earned during the period $ 100 $ 85 $ 14 $ 12 Interest cost on projected benefit obligations 62 75 8 12 Expected return on plan assets (211) (192) (7) (7) Net amortization of: Actuarial loss, net 81 63 7 8 Prior service cost (credit) — — (7) (7) Net cost — continuing operations $ 32 $ 31 $ 15 $ 18 |
Segment Information (Tables)
Segment Information (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Segment Information | |
Schedule of segment information - net sales and operating earnings | Three Months Ended March 31 Net Sales to Operating (in millions) 2021 2020 2021 2020 Established Pharmaceutical Products $ 1,070 $ 1,044 $ 169 $ 181 Nutritional Products 2,036 1,904 467 459 Diagnostic Products 4,014 1,826 1,701 405 Medical Devices 3,320 2,937 1,007 803 Total Reportable Segments 10,440 7,711 3,344 1,848 Other 16 15 Net sales $ 10,456 $ 7,726 Corporate functions and benefit plans costs (114) (132) Net interest expense (124) (121) Share-based compensation (a) (288) (233) Amortization of intangible assets (509) (561) Other, net (b) (266) (168) Earnings from continuing operations before taxes $ 2,043 $ 633 (a) Approximately 50 percent of the annual net cost of share-based awards will typically be recognized in the first quarter due to the timing of the granting of share-based awards. (b) Other, net includes integration costs associated with the acquisition of St. Jude Medical and Alere, and restructuring charges. Other, net for the three months ended March 31, 2021 also includes costs related to certain litigation. |
Revenue (Details)
Revenue (Details) $ in Millions | 3 Months Ended | |
Mar. 31, 2021USD ($)segment | Mar. 31, 2020USD ($)segment | |
Revenue | ||
Number of reportable segments | segment | 4 | 4 |
Net sales | $ 10,456 | $ 7,726 |
U.S. | ||
Revenue | ||
Net sales | 3,838 | 2,856 |
Int'l | ||
Revenue | ||
Net sales | 6,618 | 4,870 |
Established Pharmaceutical Products | ||
Revenue | ||
Net sales | 1,070 | 1,044 |
Established Pharmaceutical Products | Int'l | ||
Revenue | ||
Net sales | 1,070 | 1,044 |
Nutritional Products | ||
Revenue | ||
Net sales | 2,036 | 1,904 |
Nutritional Products | U.S. | ||
Revenue | ||
Net sales | 836 | 812 |
Nutritional Products | Int'l | ||
Revenue | ||
Net sales | 1,200 | 1,092 |
Diagnostic Products | ||
Revenue | ||
Net sales | 4,014 | 1,826 |
Diagnostic Products | U.S. | ||
Revenue | ||
Net sales | 1,641 | 803 |
Diagnostic Products | Int'l | ||
Revenue | ||
Net sales | 2,373 | 1,023 |
Medical Devices | ||
Revenue | ||
Net sales | 3,320 | 2,937 |
Medical Devices | U.S. | ||
Revenue | ||
Net sales | 1,351 | 1,233 |
Medical Devices | Int'l | ||
Revenue | ||
Net sales | 1,969 | 1,704 |
Other | ||
Revenue | ||
Net sales | 16 | 15 |
Other | U.S. | ||
Revenue | ||
Net sales | 10 | 8 |
Other | Int'l | ||
Revenue | ||
Net sales | 6 | 7 |
Key Emerging Markets | Established Pharmaceutical Products | ||
Revenue | ||
Net sales | 821 | 813 |
Key Emerging Markets | Established Pharmaceutical Products | Int'l | ||
Revenue | ||
Net sales | 821 | 813 |
Other | Established Pharmaceutical Products | ||
Revenue | ||
Net sales | 249 | 231 |
Other | Established Pharmaceutical Products | Int'l | ||
Revenue | ||
Net sales | 249 | 231 |
Pediatric Nutritionals | Nutritional Products | ||
Revenue | ||
Net sales | 1,066 | 1,089 |
Pediatric Nutritionals | Nutritional Products | U.S. | ||
Revenue | ||
Net sales | 508 | 518 |
Pediatric Nutritionals | Nutritional Products | Int'l | ||
Revenue | ||
Net sales | 558 | 571 |
Adult Nutritionals | Nutritional Products | ||
Revenue | ||
Net sales | 970 | 815 |
Adult Nutritionals | Nutritional Products | U.S. | ||
Revenue | ||
Net sales | 328 | 294 |
Adult Nutritionals | Nutritional Products | Int'l | ||
Revenue | ||
Net sales | 642 | 521 |
Core Laboratory | Diagnostic Products | ||
Revenue | ||
Net sales | 1,182 | 989 |
Core Laboratory | Diagnostic Products | U.S. | ||
Revenue | ||
Net sales | 271 | 267 |
Core Laboratory | Diagnostic Products | Int'l | ||
Revenue | ||
Net sales | 911 | 722 |
Molecular | Diagnostic Products | ||
Revenue | ||
Net sales | 447 | 139 |
Molecular | Diagnostic Products | U.S. | ||
Revenue | ||
Net sales | 175 | 65 |
Molecular | Diagnostic Products | Int'l | ||
Revenue | ||
Net sales | 272 | 74 |
Point of Care | Diagnostic Products | ||
Revenue | ||
Net sales | 129 | 138 |
Point of Care | Diagnostic Products | U.S. | ||
Revenue | ||
Net sales | 92 | 103 |
Point of Care | Diagnostic Products | Int'l | ||
Revenue | ||
Net sales | 37 | 35 |
Rapid Diagnostics | Diagnostic Products | ||
Revenue | ||
Net sales | 2,256 | 560 |
Rapid Diagnostics | Diagnostic Products | U.S. | ||
Revenue | ||
Net sales | 1,103 | 368 |
Rapid Diagnostics | Diagnostic Products | Int'l | ||
Revenue | ||
Net sales | 1,153 | 192 |
Rhythm Management | Medical Devices | ||
Revenue | ||
Net sales | 519 | 474 |
Rhythm Management | Medical Devices | U.S. | ||
Revenue | ||
Net sales | 241 | 228 |
Rhythm Management | Medical Devices | Int'l | ||
Revenue | ||
Net sales | 278 | 246 |
Electrophysiology | Medical Devices | ||
Revenue | ||
Net sales | 431 | 388 |
Electrophysiology | Medical Devices | U.S. | ||
Revenue | ||
Net sales | 179 | 164 |
Electrophysiology | Medical Devices | Int'l | ||
Revenue | ||
Net sales | 252 | 224 |
Heart Failure | Medical Devices | ||
Revenue | ||
Net sales | 194 | 203 |
Heart Failure | Medical Devices | U.S. | ||
Revenue | ||
Net sales | 145 | 152 |
Heart Failure | Medical Devices | Int'l | ||
Revenue | ||
Net sales | 49 | 51 |
Vascular | Medical Devices | ||
Revenue | ||
Net sales | 635 | 625 |
Vascular | Medical Devices | U.S. | ||
Revenue | ||
Net sales | 219 | 230 |
Vascular | Medical Devices | Int'l | ||
Revenue | ||
Net sales | 416 | 395 |
Structural Heart | Medical Devices | ||
Revenue | ||
Net sales | 377 | 318 |
Structural Heart | Medical Devices | U.S. | ||
Revenue | ||
Net sales | 169 | 136 |
Structural Heart | Medical Devices | Int'l | ||
Revenue | ||
Net sales | 208 | 182 |
Neuromodulation | Medical Devices | ||
Revenue | ||
Net sales | 184 | 177 |
Neuromodulation | Medical Devices | U.S. | ||
Revenue | ||
Net sales | 145 | 137 |
Neuromodulation | Medical Devices | Int'l | ||
Revenue | ||
Net sales | 39 | 40 |
Diabetes Care | Medical Devices | ||
Revenue | ||
Net sales | 980 | 752 |
Diabetes Care | Medical Devices | U.S. | ||
Revenue | ||
Net sales | 253 | 186 |
Diabetes Care | Medical Devices | Int'l | ||
Revenue | ||
Net sales | $ 727 | $ 566 |
Revenue - Remaining Performance
Revenue - Remaining Performance Obligations (Details) $ in Millions | 3 Months Ended |
Mar. 31, 2021USD ($) | |
Diagnostic Products | |
Remaining Performance Obligations | |
Remaining performance obligations | $ 3,800 |
Medical Devices | |
Remaining Performance Obligations | |
Remaining performance obligations | $ 400 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-04-01 | |
Remaining Performance Obligations | |
Expected timing of satisfaction period (in months) | 24 months |
Percentage of remaining performance obligation expected to be recognized in period | 60.00% |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-04-01 | |
Remaining Performance Obligations | |
Expected timing of satisfaction period (in months) | 12 months |
Percentage of remaining performance obligation expected to be recognized in period | 17.00% |
Revenue - Practical Expedient (
Revenue - Practical Expedient (Details) | 3 Months Ended |
Mar. 31, 2021 | |
Revenue | |
Practical expedient in remaining performance obligations related to contracts | true |
Revenue - Other Contract Assets
Revenue - Other Contract Assets and Liabilities (Details) $ in Millions | 3 Months Ended |
Mar. 31, 2021USD ($) | |
Contract Liabilities | |
Balance at beginning of period | $ 405 |
Unearned revenue from cash received during the period | 174 |
Revenue recognized related to contract liability balance | (163) |
Balance at end of period | $ 416 |
Supplemental Financial Inform_3
Supplemental Financial Information - Income Statement (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Supplemental Financial Information | ||
Earnings from continuing operations allocated to common shares | $ 1,785 | $ 541 |
Net earnings allocated to common shares | $ 1,785 | $ 561 |
Supplemental Financial Inform_4
Supplemental Financial Information - Cash Flows (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Cash flow disclosures | ||
Payment of cash taxes | $ 270 | $ 125 |
Net tax benefits primarily as a result of the resolution of various tax positions related to prior years related to discontinued operation | 20 | |
Defined Benefit Plans | ||
Cash flow disclosures | ||
Pension contributions | $ 16 | $ 320 |
Supplemental Financial Inform_5
Supplemental Financial Information - Allowance for Doubtful Accounts (Details) $ in Millions | 3 Months Ended |
Mar. 31, 2021USD ($) | |
Allowances for Doubtful Accounts and Product Returns | |
Balance at December 31, 2020 | $ 288 |
Provisions/charges to income | 15 |
Amounts charged off and other deductions | (8) |
Balance at March 31, 2021 | $ 295 |
Supplemental Financial Inform_6
Supplemental Financial Information - Investments (Details) - USD ($) $ in Millions | Mar. 31, 2021 | Dec. 31, 2020 |
Investments | ||
Long-term Investments | $ 832 | $ 821 |
Equity method investments carrying value | 289 | |
Equity investment without readily determinable fair value | 105 | |
Equity securities | ||
Investments | ||
Long-term Investments | 785 | 776 |
Other | ||
Investments | ||
Long-term Investments | 47 | $ 45 |
St Jude Medical | Equity securities | ||
Investments | ||
Securities in mutual funds held in a rabbi trust | $ 375 |
Changes in Accumulated Other _3
Changes in Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Changes in accumulated other comprehensive income (loss), net of income taxes | ||
Beginning of the period | $ 32,784 | |
Net current period comprehensive income (loss) | (339) | $ (921) |
End of the period | 33,562 | |
Cumulative Foreign Currency Translation Adjustments | ||
Changes in accumulated other comprehensive income (loss), net of income taxes | ||
Beginning of the period | (4,859) | (4,924) |
Other comprehensive income (loss) before reclassifications | (536) | (1,144) |
Net current period comprehensive income (loss) | (536) | (1,144) |
End of the period | (5,395) | (6,068) |
Net Actuarial (Losses) and Prior Service (Costs) and Credits | ||
Changes in accumulated other comprehensive income (loss), net of income taxes | ||
Beginning of the period | (3,871) | (3,540) |
Other comprehensive income (loss) before reclassifications | 22 | 7 |
Amounts reclassified from accumulated other comprehensive income | 63 | 50 |
Net current period comprehensive income (loss) | 85 | 57 |
End of the period | (3,786) | (3,483) |
Cumulative Gains (Losses) on Derivative Instruments Designated as Cash Flow Hedges | ||
Changes in accumulated other comprehensive income (loss), net of income taxes | ||
Beginning of the period | (216) | (1) |
Other comprehensive income (loss) before reclassifications | 96 | 176 |
Amounts reclassified from accumulated other comprehensive income | 16 | (10) |
Net current period comprehensive income (loss) | 112 | 166 |
End of the period | $ (104) | $ 165 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets - Goodwill (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Dec. 31, 2020 | |
Goodwill and Intangible Assets | ||
Goodwill | $ 23,384 | $ 23,744 |
Decrease in goodwill from foreign currency translation adjustments | 360 | |
Amount of reductions of goodwill relating to impairments | 0 | |
Established Pharmaceutical Products | ||
Goodwill and Intangible Assets | ||
Goodwill | 2,900 | |
Nutritional Products | ||
Goodwill and Intangible Assets | ||
Goodwill | 286 | |
Diagnostic Products | ||
Goodwill and Intangible Assets | ||
Goodwill | 3,800 | |
Medical Devices | ||
Goodwill and Intangible Assets | ||
Goodwill | $ 16,300 |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets - Intangible Assets (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Dec. 31, 2020 | |
Goodwill and Intangible Assets | ||
Gross amount of amortizable intangible assets | $ 27,500 | $ 27,800 |
Accumulated amortization of intangible assets | 14,500 | 14,200 |
Increase (Decrease) in intangible assets due to foreign currency translation adjustments | (94) | |
Estimated annual amortization expense, intangible assets, 2021 | 2,000 | |
Estimated annual amortization expense, intangible assets, 2022 | 2,000 | |
Estimated annual amortization expense, intangible assets, 2023 | 1,900 | |
Estimated annual amortization expense, intangible assets, 2024 | 1,900 | |
Estimated annual amortization expense, intangible assets, 2025 | 1,900 | |
Indefinite-lived intangible assets related to in-process R&D acquired in a business combination | $ 1,200 | $ 1,200 |
Restructuring Plans - Plans (De
Restructuring Plans - Plans (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Dec. 31, 2020 | |
Restructuring costs | ||
Restructuring reserve | $ 58 | $ 70 |
Additional charges | 1 | |
St Jude and Alere Integrations | ||
Restructuring costs | ||
Restructuring reserve | 13 | $ 25 |
Additional charges | 0 | |
Streamline of Operations and Improve Efficiencies | ||
Restructuring costs | ||
Additional charges | $ 1 |
Restructuring Plans - Activity
Restructuring Plans - Activity (Details) $ in Millions | 3 Months Ended |
Mar. 31, 2021USD ($) | |
Restructuring Plans | |
Accrued balance at beginning of the period | $ 70 |
Restructuring charges recorded in 2021 | 1 |
Payments and other adjustments | (13) |
Accrued balance at end of the period | $ 58 |
Incentive Stock Programs - Gene
Incentive Stock Programs - General (Details) | 3 Months Ended |
Mar. 31, 2021shares | |
Incentive Stock Program | |
Incentive stock program, shares reserved for future grants | 101,000,000 |
Stock options | |
Incentive Stock Program | |
Stock options granted during the period (in shares) | 2,693,918 |
Restricted stock awards | |
Incentive Stock Program | |
Grants in period, restricted stock (in shares) | 478,490 |
Restricted stock units | |
Incentive Stock Program | |
Awards and units granted during period (in shares) | 4,511,126 |
Incentive Stock Programs - Opti
Incentive Stock Programs - Options (Details) $ / shares in Units, $ in Millions | 3 Months Ended |
Mar. 31, 2021USD ($)$ / sharesshares | |
Incentive Stock Program | |
Total unrecognized compensation cost | $ 744 |
Total unrecognized compensation cost, recognition period | 3 years |
Stock options | |
Incentive Stock Program | |
Stock options outstanding, number of shares | shares | 30,484,541 |
Exercisable options, number of shares | shares | 23,519,084 |
Stock options outstanding, weighted-average remaining life | 6 years 2 months 12 days |
Exercisable options, weighted-average remaining life | 5 years 4 months 24 days |
Stock options outstanding, weighted-average exercise price (in dollars per share) | $ / shares | $ 62.17 |
Exercisable options, weighted-average exercise price (in dollars per share) | $ / shares | $ 51.23 |
Aggregate intrinsic value of options outstanding | $ 1,769 |
Aggregate intrinsic value of options exercisable | $ 1,614 |
Financial Instruments, Deriva_3
Financial Instruments, Derivatives and Fair Value Measures - Contracts (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Dec. 31, 2020 | |
Designated as hedging instrument | Yen-denominated long-term debt | Net investment hedges | ||
Financial Instruments, Derivatives and Fair Value Measures | ||
Term loan | $ 542 | $ 577 |
Debt Instrument, Term | 5 years | |
Designated as hedging instrument | Foreign currency forward exchange contracts | Cash flow hedges | ||
Financial Instruments, Derivatives and Fair Value Measures | ||
Gross notional amount | $ 8,600 | 8,100 |
Minimum length of time over which accumulated gains and losses will be recognized in Cost of products sold | 12 months | |
Maximum length of time over which accumulated gains and losses will be recognized in Cost of products sold | 18 months | |
Designated as hedging instrument | Interest rate swaps | Fair value hedges | ||
Financial Instruments, Derivatives and Fair Value Measures | ||
Gross notional amount | $ 2,900 | 2,900 |
Not designated as hedging instrument | Foreign currency forward exchange contracts | ||
Financial Instruments, Derivatives and Fair Value Measures | ||
Gross notional amount | $ 10,200 | $ 11,000 |
Financial Instruments, Deriva_4
Financial Instruments, Derivatives and Fair Value Measures - Location of Derivative Instruments (Details) - USD ($) $ in Millions | Mar. 31, 2021 | Dec. 31, 2020 |
Derivative instruments and fair value | ||
Fair Value - Assets | $ 322 | $ 300 |
Fair Value - Liabilities | 801 | 1,075 |
Designated as hedging instrument | Interest rate swaps | Deferred income taxes and other assets | Fair value hedges | ||
Derivative instruments and fair value | ||
Fair Value - Assets | 141 | 210 |
Designated as hedging instrument | Foreign currency forward exchange contracts | Prepaid expenses and other receivables | ||
Derivative instruments and fair value | ||
Fair Value - Assets | 105 | 30 |
Designated as hedging instrument | Foreign currency forward exchange contracts | Other accrued liabilities | ||
Derivative instruments and fair value | ||
Fair Value - Liabilities | 167 | 433 |
Designated as hedging instrument | Debt | Long-term Debt | Net investment hedges | ||
Derivative instruments and fair value | ||
Fair Value - Liabilities | 542 | 577 |
Not designated as hedging instrument | Foreign currency forward exchange contracts | Prepaid expenses and other receivables | ||
Derivative instruments and fair value | ||
Fair Value - Assets | 76 | 60 |
Not designated as hedging instrument | Foreign currency forward exchange contracts | Other accrued liabilities | ||
Derivative instruments and fair value | ||
Fair Value - Liabilities | $ 92 | $ 65 |
Financial Instruments, Deriva_5
Financial Instruments, Derivatives and Fair Value Measures - Gain or Loss (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Foreign currency forward exchange contracts | Not designated as hedging instrument | ||
Gain (loss) on derivatives | ||
Income (expense) and Gains (loss) Reclassified into Income | $ 49 | $ (165) |
Foreign currency forward exchange contracts | Cash flow hedges | Designated as hedging instrument | Cost of products sold | ||
Gain (loss) on derivatives | ||
Gain (loss) Recognized in Other Comprehensive Income (loss) | 134 | 227 |
Income (expense) and Gains (loss) Reclassified into Income | (23) | 11 |
Debt | Net investment hedges | Designated as hedging instrument | ||
Gain (loss) on derivatives | ||
Gain (loss) Recognized in Other Comprehensive Income (loss) | 35 | (8) |
Interest rate swaps | Fair value hedges | Designated as hedging instrument | Interest expense | ||
Gain (loss) on derivatives | ||
Income (expense) and Gains (loss) Reclassified into Income | $ (69) | $ 168 |
Financial Instruments, Deriva_6
Financial Instruments, Derivatives and Fair Value Measures - Carrying Value and Fair Value (Details) - USD ($) $ in Millions | Mar. 31, 2021 | Dec. 31, 2020 |
Fair value, asset and liability measures | ||
Long-term Investments | $ 832 | $ 821 |
Equity securities | ||
Fair value, asset and liability measures | ||
Long-term Investments | 785 | 776 |
Carrying Value | ||
Fair value, asset and liability measures | ||
Total Long-Term debt | (18,245) | (18,534) |
Foreign currency forward exchange contracts, receivable position | 181 | 90 |
Foreign currency forward exchange contracts, (payable) position | (259) | (498) |
Interest rate hedge contracts, receivable position | 141 | 210 |
Carrying Value | Equity securities | ||
Fair value, asset and liability measures | ||
Long-term Investments | 785 | 776 |
Carrying Value | Other | ||
Fair value, asset and liability measures | ||
Long-term Investments | 47 | 45 |
Fair Value | ||
Fair value, asset and liability measures | ||
Total Long-Term debt | (21,046) | (22,809) |
Foreign currency forward exchange contracts, receivable position | 181 | 90 |
Foreign currency forward exchange contracts, (payable) position | (259) | (498) |
Interest rate hedge contracts, receivable position | 141 | 210 |
Fair Value | Equity securities | ||
Fair value, asset and liability measures | ||
Long-term Investments | 785 | 776 |
Fair Value | Other | ||
Fair value, asset and liability measures | ||
Long-term Investments | $ 47 | $ 45 |
Financial Instruments, Deriva_7
Financial Instruments, Derivatives and Fair Value Measures - Bases of Measurement (Details) - Recurring - USD ($) $ in Millions | Mar. 31, 2021 | Dec. 31, 2020 |
Fair value, asset and liability measures | ||
Equity securities | $ 391 | $ 386 |
Interest rate swap derivative financial instruments, assets | 141 | 210 |
Foreign currency forward exchange contracts | 181 | 90 |
Total Assets | 713 | 686 |
Fair value of hedged long-term debt | 2,980 | 3,049 |
Foreign currency forward exchange contracts | 259 | 498 |
Contingent consideration related to business combinations | 67 | 68 |
Total Liabilities | 3,306 | 3,615 |
Quoted Prices in Active Markets | ||
Fair value, asset and liability measures | ||
Equity securities | 391 | 386 |
Total Assets | 391 | 386 |
Significant Other Observable Inputs | ||
Fair value, asset and liability measures | ||
Interest rate swap derivative financial instruments, assets | 141 | 210 |
Foreign currency forward exchange contracts | 181 | 90 |
Total Assets | 322 | 300 |
Fair value of hedged long-term debt | 2,980 | 3,049 |
Foreign currency forward exchange contracts | 259 | 498 |
Total Liabilities | 3,239 | 3,547 |
Significant Unobservable Inputs | ||
Fair value, asset and liability measures | ||
Contingent consideration related to business combinations | 67 | 68 |
Total Liabilities | $ 67 | $ 68 |
Litigation and Environmental _2
Litigation and Environmental Matters (Details) $ in Millions | Mar. 31, 2021USD ($) |
Loss Contingencies | |
Maximum expected cleanup exposure for individual site | $ 4 |
Maximum expected cleanup exposure in aggregate | 10 |
Legal proceedings and environmental exposures | |
Loss Contingencies | |
Recorded accrual balance for legal proceedings and exposures | 230 |
Legal proceedings and environmental exposures | Minimum | |
Loss Contingencies | |
Estimation of possible loss | 215 |
Legal proceedings and environmental exposures | Maximum | |
Loss Contingencies | |
Estimation of possible loss | $ 250 |
Post-Employment Benefits - (Det
Post-Employment Benefits - (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Defined Benefit Plans | ||
Defined benefit plan net periodic benefit cost | ||
Service cost - benefits earned during the period | $ 100 | $ 85 |
Interest cost on projected benefit obligations | 62 | 75 |
Expected return on plan assets | (211) | (192) |
Net amortization of: | ||
Actuarial loss, net | 81 | 63 |
Net cost - continuing operations | 32 | 31 |
Post-employment Obligations and Other Long-term Liabilities: | ||
Company contributions | 16 | 320 |
Medical and Dental Plans | ||
Defined benefit plan net periodic benefit cost | ||
Service cost - benefits earned during the period | 14 | 12 |
Interest cost on projected benefit obligations | 8 | 12 |
Expected return on plan assets | (7) | (7) |
Net amortization of: | ||
Actuarial loss, net | 7 | 8 |
Prior service cost (credit) | (7) | (7) |
Net cost - continuing operations | 15 | 18 |
Post-employment Obligations and Other Long-term Liabilities: | ||
Company contributions | $ 0 | $ 11 |
Taxes on Earnings (Details)
Taxes on Earnings (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Taxes on Earnings | ||
Excess tax benefits associated with share-based compensation | $ (80) | $ (47) |
Net tax benefits primarily as a result of the resolution of various tax positions related to prior years related to discontinued operation | $ 20 | |
Decrease reasonably possible in gross unrecognized tax benefits | $ 50 |
Segment Information (Details)
Segment Information (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Segment Information | ||
Net Sales to External Customers | $ 10,456 | $ 7,726 |
Operating Earnings | 2,109 | 758 |
Amortization of intangible assets | (509) | (561) |
Earnings from continuing operations before tax | $ 2,043 | 633 |
Annual share-based awards recognized in first quarter (as a percent) | 50.00% | |
Established Pharmaceutical Products | ||
Segment Information | ||
Net Sales to External Customers | $ 1,070 | 1,044 |
Nutritional Products | ||
Segment Information | ||
Net Sales to External Customers | 2,036 | 1,904 |
Diagnostic Products | ||
Segment Information | ||
Net Sales to External Customers | 4,014 | 1,826 |
Medical Devices | ||
Segment Information | ||
Net Sales to External Customers | 3,320 | 2,937 |
Other | ||
Segment Information | ||
Net Sales to External Customers | 16 | 15 |
Total Reportable Segment Operating Earnings | ||
Segment Information | ||
Net Sales to External Customers | 10,440 | 7,711 |
Operating Earnings | 3,344 | 1,848 |
Total Reportable Segment Operating Earnings | Established Pharmaceutical Products | ||
Segment Information | ||
Net Sales to External Customers | 1,070 | 1,044 |
Operating Earnings | 169 | 181 |
Total Reportable Segment Operating Earnings | Nutritional Products | ||
Segment Information | ||
Net Sales to External Customers | 2,036 | 1,904 |
Operating Earnings | 467 | 459 |
Total Reportable Segment Operating Earnings | Diagnostic Products | ||
Segment Information | ||
Net Sales to External Customers | 4,014 | 1,826 |
Operating Earnings | 1,701 | 405 |
Total Reportable Segment Operating Earnings | Medical Devices | ||
Segment Information | ||
Net Sales to External Customers | 3,320 | 2,937 |
Operating Earnings | 1,007 | 803 |
Reconciling items | ||
Segment Information | ||
Corporate functions and benefit plans costs | (114) | (132) |
Net interest expense | (124) | (121) |
Share-based compensation | (288) | (233) |
Amortization of intangible assets | (509) | (561) |
Other, net | $ (266) | $ (168) |