Document and Entity Information
Document and Entity Information | 6 Months Ended |
Jun. 30, 2019shares | |
Document and Entity Information | |
Document Type | 10-Q |
Document Quarterly Report | true |
Document Period End Date | Jun. 30, 2019 |
Document Transition Report | false |
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 | 1,767,397,615 |
Entity Central Index Key | 0000001800 |
Current Fiscal Year End Date | --12-31 |
Document Fiscal Year Focus | 2019 |
Document Fiscal Period Focus | Q2 |
Amendment Flag | false |
New York Stock Exchange | |
Document and Entity Information | |
Trading Symbol | ABT |
Security Exchange Name | NYSE |
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 | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Net sales | $ 7,979 | $ 7,767 | $ 15,514 | $ 15,157 |
Cost of products sold, excluding amortization of intangible assets | 3,279 | 3,282 | 6,439 | 6,349 |
Amortization of intangible assets | 483 | 562 | 969 | 1,146 |
Research and development | 577 | 575 | 1,249 | 1,164 |
Selling, general and administrative | 2,434 | 2,466 | 4,912 | 5,008 |
Total operating cost and expenses | 6,773 | 6,885 | 13,569 | 13,667 |
Operating earnings | 1,206 | 882 | 1,945 | 1,490 |
Interest expense | 168 | 210 | 339 | 437 |
Interest (income) | (22) | (21) | (45) | (49) |
Net foreign exchange (gain) loss | (4) | (6) | 2 | (9) |
Net loss on extinguishment of debt | 14 | |||
Other (income) expense, net | (38) | (78) | (85) | (111) |
Earnings from continuing operations before tax | 1,102 | 777 | 1,734 | 1,208 |
Tax expense on earnings from continuing operations | 96 | 59 | 56 | 81 |
Earnings from continuing operations | 1,006 | 718 | 1,678 | 1,127 |
Earnings from discontinued operations, net of tax | 15 | 24 | ||
Net Earnings | $ 1,006 | $ 733 | $ 1,678 | $ 1,151 |
Basic Earnings Per Common Share | ||||
Continuing operations (in dollars per share) | $ 0.57 | $ 0.41 | $ 0.94 | $ 0.64 |
Discontinued operations (in dollars per share) | 0.01 | 0.01 | ||
Net earnings (in dollars per share) | 0.57 | 0.42 | 0.94 | 0.65 |
Diluted Earnings Per Common Share | ||||
Continuing operations (in dollars per share) | 0.56 | 0.40 | 0.94 | 0.63 |
Discontinued operations (in dollars per share) | 0.01 | 0.01 | ||
Net earnings (in dollars per share) | $ 0.56 | $ 0.41 | $ 0.94 | $ 0.64 |
Average Number of Common Shares Outstanding Used for Basic Earnings Per Common Share (in shares) | 1,768,904 | 1,757,836 | 1,766,182 | 1,755,691 |
Dilutive Common Stock Options (in shares) | 12,513 | 11,114 | 12,904 | 11,490 |
Average Number of Common Shares Outstanding Plus Dilutive Common Stock Options (in shares) | 1,781,417 | 1,768,950 | 1,779,086 | 1,767,181 |
Outstanding Common Stock Options Having No Dilutive Effect (in shares) | 247 | 93 | 247 | 93 |
Condensed Consolidated Statem_2
Condensed Consolidated Statement of Comprehensive Income - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Dec. 31, 2018 | |
Net Earnings | $ 1,006 | $ 733 | $ 1,678 | $ 1,151 | |
Foreign currency translation gain (loss) adjustments | 91 | (1,359) | 213 | (1,026) | |
Net actuarial gains (losses) and amortization of net actuarial (losses) and prior service (cost) and credits, net of taxes of $7 and $14 in 2019 and $15 and $32 in 2018 | 26 | 61 | 49 | 84 | |
Net gains (losses) for derivative instruments designated as cash flow hedges and other, net of taxes of $(7) and $(15) in 2019 and $48 and $28 in 2018 | (12) | 118 | (41) | 86 | |
Other comprehensive income (loss) | 105 | (1,180) | 221 | (856) | |
Comprehensive Income (Loss) | 1,111 | $ (447) | 1,899 | $ 295 | |
Supplemental Accumulated Other Comprehensive Income (Loss) Information, net of tax: | |||||
Cumulative foreign currency translation (loss) adjustments | (4,699) | (4,699) | $ (4,912) | ||
Net actuarial (losses) and prior service (costs) and credits | (2,677) | (2,677) | (2,726) | ||
Cumulative gains (losses) on derivative instruments designated as cash flow hedges and other | 11 | 11 | 52 | ||
Accumulated other comprehensive income (loss) | $ (7,365) | $ (7,365) | $ (7,586) |
Condensed Consolidated Statem_3
Condensed Consolidated Statement of Comprehensive Income (Parenthetical) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Net actuarial gains (losses) and amortization of net actuarial (losses) and prior service (cost) and credits, taxes | $ 7 | $ 15 | $ 14 | $ 32 |
Net gains (losses) for derivative instruments designated as cash flow hedges, taxes | $ (7) | $ 48 | $ (15) | $ 28 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheet - USD ($) $ in Millions | Jun. 30, 2019 | Dec. 31, 2018 |
Current Assets: | ||
Cash and cash equivalents | $ 3,137 | $ 3,844 |
Short-term investments | 239 | 242 |
Trade receivables, less allowances of $338 in 2019 and $314 in 2018 | 5,548 | 5,182 |
Inventories: | ||
Finished products | 2,786 | 2,407 |
Work in process | 584 | 499 |
Materials | 982 | 890 |
Total inventories | 4,352 | 3,796 |
Prepaid expenses and other receivables | 1,919 | 1,568 |
Total Current Assets | 15,195 | 14,632 |
Investments | 851 | 897 |
Property and Equipment, at Cost: | ||
Property and equipment, at cost | 16,331 | 15,706 |
Less: accumulated depreciation and amortization | 8,506 | 8,143 |
Net property and equipment | 7,825 | 7,563 |
Intangible assets, net of amortization | 18,091 | 18,942 |
Goodwill | 23,329 | 23,254 |
Deferred income taxes and other assets | 3,136 | 1,885 |
Total Assets | 68,427 | 67,173 |
Current Liabilities: | ||
Short-term borrowings | 204 | 200 |
Trade accounts payable | 3,222 | 2,975 |
Salaries, wages and commissions | 1,018 | 1,182 |
Other accrued liabilities | 3,961 | 3,780 |
Dividends payable | 566 | 563 |
Income taxes payable | 83 | 305 |
Current portion of long-term debt | 8 | 7 |
Total Current Liabilities | 9,062 | 9,012 |
Long-term debt | 18,982 | 19,359 |
Post-employment obligations, deferred income taxes and other long-term liabilities | 8,489 | 8,080 |
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: 2019: 1,976,248,129 ; 2018: 1,971,189,465 | 23,665 | 23,512 |
Common shares held in treasury, at cost - Shares: 2019: 208,850,514 ; 2018: 215,570,043 | (9,659) | (9,962) |
Earnings employed in the business | 25,045 | 24,560 |
Accumulated other comprehensive income (loss) | (7,365) | (7,586) |
Total Abbott Shareholders' Investment | 31,686 | 30,524 |
Noncontrolling Interests in Subsidiaries | 208 | 198 |
Total Shareholders' Investment | 31,894 | 30,722 |
Total Liabilities and Shareholders' Investment | $ 68,427 | $ 67,173 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheet (Parenthetical) - USD ($) $ in Millions | Jun. 30, 2019 | Dec. 31, 2018 |
Trade receivables, allowances (in dollars) | $ 338 | $ 314 |
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 | 1,976,248,129 | 1,971,189,465 |
Common shares held in treasury, shares | 208,850,514 | 215,570,043 |
Condensed Consolidated Statem_4
Condensed Consolidated Statement of Shareholders' Investment - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Jan. 01, 2018 | |
Increase (Decrease) in Shareholders' Investment | |||||
Balance at beginning of period | $ 30,722 | ||||
Net earnings | $ 1,006 | $ 733 | 1,678 | $ 1,151 | |
Other comprehensive income (loss) | 105 | (1,180) | 221 | (856) | |
Balance at end of period | 31,894 | 31,894 | |||
Common Shares: | |||||
Increase (Decrease) in Shareholders' Investment | |||||
Balance at beginning of period | 23,461 | 23,223 | 23,512 | 23,206 | |
Issued under incentive stock programs | 111 | 10 | 187 | 112 | |
Share-based compensation | 106 | 90 | 343 | 315 | |
Issuance of restricted stock awards | (13) | (6) | (377) | (316) | |
Balance at end of period | 23,665 | 23,317 | 23,665 | 23,317 | |
Common Shares Held in Treasury: | |||||
Increase (Decrease) in Shareholders' Investment | |||||
Balance at beginning of period | (9,679) | (9,947) | (9,962) | (10,225) | |
Issued under incentive stock programs | 21 | 41 | 324 | 333 | |
Purchased | (1) | (1) | (21) | (15) | |
Balance at end of period | (9,659) | (9,907) | (9,659) | (9,907) | |
Earnings Employed in the Business: | |||||
Increase (Decrease) in Shareholders' Investment | |||||
Balance at beginning of period | 24,613 | 23,856 | 24,560 | 23,978 | |
Impact of adoption of new accounting standard | $ 15 | ||||
Net earnings | 1,006 | 733 | 1,678 | 1,151 | |
Cash dividends declared on common shares (in dollars per share) | (568) | (495) | (1,136) | (988) | |
Effect of common and treasury share transactions | (6) | (14) | (57) | (76) | |
Balance at end of period | 25,045 | 24,080 | 25,045 | 24,080 | |
Accumulated Other Comprehensive Income (Loss): | |||||
Increase (Decrease) in Shareholders' Investment | |||||
Balance at beginning of period | (7,470) | (5,733) | (7,586) | (6,062) | |
Impact of adoption of new accounting standard | $ 5 | ||||
Other comprehensive income (loss) | 105 | (1,180) | 221 | (856) | |
Balance at end of period | (7,365) | (6,913) | (7,365) | (6,913) | |
Noncontrolling Interests in Subsidiaries: | |||||
Increase (Decrease) in Shareholders' Investment | |||||
Balance at beginning of period | 204 | 202 | 198 | 201 | |
Noncontrolling Interests' share of income, business combinations, net of distributions and share repurchases | 4 | (5) | 10 | (4) | |
Balance at end of period | $ 208 | $ 197 | $ 208 | $ 197 |
Condensed Consolidated Statem_5
Condensed Consolidated Statement of Shareholders' Investment (Parenthetical) - $ / shares | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Common Shares: | ||||
Increase (Decrease) in Shareholders' Investment | ||||
Balance at beginning of period (in shares) | 1,973,472,506 | 1,969,331,007 | 1,971,189,465 | 1,965,908,188 |
Issued under incentive stock programs (in shares) | 2,775,623 | 244,359 | 5,058,664 | 3,667,178 |
Balance at end of period (in shares) | 1,976,248,129 | 1,969,575,366 | 1,976,248,129 | 1,969,575,366 |
Common Shares Held in Treasury: | ||||
Increase (Decrease) in Shareholders' Investment | ||||
Balance at beginning of period (in shares) | 209,291,244 | 216,143,241 | 215,570,043 | 222,305,719 |
Issued under incentive stock programs (in shares) | 441,459 | 891,641 | 6,986,386 | 7,294,336 |
Purchased (in shares) | 729 | 4,482 | 266,857 | 244,699 |
Balance at end of period (in shares) | 208,850,514 | 215,256,082 | 208,850,514 | 215,256,082 |
Earnings Employed in the Business: | ||||
Increase (Decrease) in Shareholders' Investment | ||||
Cash dividends declared per common share | $ 0.32 | $ 0.28 | $ 0.64 | $ 0.56 |
Condensed Consolidated Statem_6
Condensed Consolidated Statement of Cash Flows - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Cash Flow From (Used in) Operating Activities: | ||
Net earnings | $ 1,678 | $ 1,151 |
Adjustments to reconcile net earnings to net cash from operating activities - | ||
Depreciation | 535 | 556 |
Amortization of intangible assets | 969 | 1,146 |
Share-based compensation | 340 | 313 |
Amortization of inventory step-up | 32 | |
Trade receivables | (335) | (137) |
Inventories | (540) | (336) |
Other, net | (875) | (373) |
Net Cash From Operating Activities | 1,772 | 2,352 |
Cash Flow From (Used in) Investing Activities: | ||
Acquisitions of property and equipment | (803) | (573) |
Acquisitions of businesses and technologies, net of cash acquired | (160) | (43) |
Proceeds from business dispositions | 48 | 48 |
Sales (purchases) of other investment securities, net | 2 | (42) |
Other | 19 | 73 |
Net Cash (Used in) Investing Activities | (894) | (537) |
Cash Flow From (Used in) Financing Activities: | ||
Net borrowings (repayments) of short-term debt and other | 40 | 140 |
Repayments of long-term debt | (521) | (7,280) |
Purchases of common shares | (221) | (131) |
Proceeds from stock options exercised | 244 | 170 |
Dividends paid | (1,133) | (985) |
Net Cash (Used in) Financing Activities | (1,591) | (8,086) |
Effect of exchange rate changes on cash and cash equivalents | 6 | (71) |
Net Decrease in Cash and Cash Equivalents | (707) | (6,342) |
Cash and Cash Equivalents, Beginning of Year | 3,844 | 9,407 |
Cash and Cash Equivalents, End of Period | $ 3,137 | $ 3,065 |
Basis of Presentation
Basis of Presentation | 6 Months Ended |
Jun. 30, 2019 | |
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, 2018. The condensed consolidated financial statements include the accounts of the parent company and subsidiaries, after elimination of intercompany transactions. |
New Accounting Standards
New Accounting Standards | 6 Months Ended |
Jun. 30, 2019 | |
New Accounting Standards | |
New Accounting Standards | Note 2 — New Accounting Standards Recently Adopted Accounting Standards In February 2016, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2016-02, Leases The new lease accounting standard does not have a material impact on the amounts reported in the Condensed Consolidated Statement of Earnings but does have a material impact on the amounts reported in the Condensed Consolidated Balance Sheet. Adoption of the new standard resulted in the recording of approximately $850 million of new right of use (ROU) assets and additional liabilities for operating leases on the Condensed Consolidated Balance Sheet as of January 1, 2019. Recent Accounting Standards Not Yet Adopted In June 2016, the FASB issued ASU 2016-13, Financial Instruments – Credit Losses |
Revenue
Revenue | 6 Months Ended |
Jun. 30, 2019 | |
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 Cardiovascular and Neuromodulation Products. Diabetes Care is a non-reportable segment and is included in Other. The following tables provide detail by sales category: Three Months Ended June 30, 2019 Three Months Ended June 30, 2018 (in millions) U.S. Int’l Total U.S. Int’l Total Established Pharmaceutical Products — Key Emerging Markets $ — $ 853 $ 853 $ — $ 866 $ 866 Other — 255 255 — 263 263 Total — 1,108 1,108 — 1,129 1,129 Nutritionals — Pediatric Nutritionals 475 576 1,051 469 582 1,051 Adult Nutritionals 311 513 824 312 495 807 Total 786 1,089 1,875 781 1,077 1,858 Diagnostics — Core Laboratory 272 897 1,169 248 880 1,128 Molecular 38 69 107 38 84 122 Point of Care 113 32 145 108 31 139 Rapid Diagnostics 272 212 484 258 226 484 Total 695 1,210 1,905 652 1,221 1,873 Cardiovascular and Neuromodulation — Rhythm Management 273 275 548 285 286 571 Electrophysiology 190 240 430 170 230 400 Heart Failure 149 52 201 117 46 163 Vascular 270 460 730 284 466 750 Structural Heart 152 200 352 118 197 315 Neuromodulation 168 44 212 173 49 222 Total 1,202 1,271 2,473 1,147 1,274 2,421 Other 167 451 618 122 364 486 Total $ 2,850 $ 5,129 $ 7,979 $ 2,702 $ 5,065 $ 7,767 Six Months Ended June 30, 2019 Six Months Ended June 30, 2018 (in millions) U.S. Int’l Total U.S. Int’l Total Established Pharmaceutical Products — Key Emerging Markets $ — $ 1,605 $ 1,605 $ — $ 1,659 $ 1,659 Other — 495 495 — 514 514 Total — 2,100 2,100 — 2,173 2,173 Nutritionals — Pediatric Nutritionals 928 1,152 2,080 917 1,128 2,045 Adult Nutritionals 605 982 1,587 622 947 1,569 Total 1,533 2,134 3,667 1,539 2,075 3,614 Diagnostics — Core Laboratory 521 1,709 2,230 476 1,671 2,147 Molecular 78 137 215 77 163 240 Point of Care 222 58 280 218 62 280 Rapid Diagnostics 598 423 1,021 581 462 1,043 Total 1,419 2,327 3,746 1,352 2,358 3,710 Cardiovascular and Neuromodulation — Rhythm Management 525 537 1,062 571 563 1,134 Electrophysiology 364 471 835 330 433 763 Heart Failure 292 93 385 231 85 316 Vascular 536 903 1,439 570 919 1,489 Structural Heart 288 388 676 227 381 608 Neuromodulation 320 85 405 341 93 434 Total 2,325 2,477 4,802 2,270 2,474 4,744 Other 327 872 1,199 216 700 916 Total $ 5,604 $ 9,910 $ 15,514 $ 5,377 $ 9,780 $ 15,157 Note: Insertable Cardiac Monitor (ICM) sales, which had previously been reported in Electrophysiology, are now included in Rhythm Management. Historic periods have been adjusted to reflect this change. Remaining Performance Obligations As of June 30, 2019, the estimated revenue expected to be recognized in the future related to performance obligations that are unsatisfied (or partially unsatisfied) was approximately $3.1 billion in the Diagnostics segment and approximately $375 million in the Cardiovascular and Neuromodulation 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. Other Contract Assets and Liabilities Abbott discloses Trade receivables separately in the Condensed Consolidated Balance Sheet at their net realizable value. Contract assets primarily relate to Abbott’s conditional right to consideration for work completed but not billed at the reporting date. Contract assets at the beginning and end of the period, as well as the changes in the balance, were not significant. Contract liabilities primarily relate to payments received from customers in advance of performance under the contract. Abbott’s contract liabilities arise primarily in the Cardiovascular and Neuromodulation reportable segment when payment is received upfront for various multi-period extended service arrangements. Changes in the contract liabilities during the period are as follows: (in millions) Contract Liabilities Balance at December 31, 2018 $ 259 Unearned revenue from cash received during the period 201 Revenue recognized that was included in contract liability balance at beginning of period (163) Balance at June 30, 2019 $ 297 |
Supplemental Financial Informat
Supplemental Financial Information | 6 Months Ended |
Jun. 30, 2019 | |
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 June 30, 2019 and 2018 were $1.0 billion and $714 million, respectively, and for the six months ended June 30, 2019 and 2018 were $1.668 billion and $1.121 billion, respectively. Net earnings allocated to common shares for the three months ended June 30, 2019 and 2018 were $1.0 billion and $730 million, respectively, and for the six months ended June 30, 2019 and 2018 were $1.668 billion and $1.144 billion, respectively. Other, net in Net cash from operating activities in the Condensed Consolidated Statement of Cash Flows for the first six months of 2019 includes $326 million of pension contributions and the payment of cash taxes of approximately $615 million. The first six months of 2018 includes the payment of cash taxes of approximately $425 million. The components of long-term investments as of June 30, 2019 and December 31, 2018 are as follows: June 30, December 31, (in millions) 2019 2018 Long-term Investments: Equity securities $ 816 $ 856 Other 35 41 Total $ 851 $ 897 Abbott's equity securities as of June 30, 2019, include approximately $320 million of investments in mutual funds that are held in a rabbi trust and were acquired as part of the St. Jude Medical, Inc. (St. Jude Medical) business acquisition. These investments, which are specifically designated as available for the purpose of paying benefits under a deferred compensation plan, are not available for general corporate purposes and are subject to creditor claims in the event of insolvency. Abbott also holds certain investments as of June 30, 2019 with a carrying value of approximately $325 million that are accounted for under the equity method of accounting and other equity investments with a carrying value of approximately $160 million that do not have a readily determinable fair value. The $160 million carrying value includes cumulative unrealized gains of approximately $50 million. In the first quarter of 2019, in conjunction with the acquisition of Cephea Valve Technologies, Inc., Abbott acquired a research & development (R&D) asset valued at $102 million, which was immediately expensed. The $102 million of expense was recorded in the R&D line of Abbott's Condensed Consolidated Statement of Earnings. |
Changes in Accumulated Other Co
Changes in Accumulated Other Comprehensive Income (Loss) | 6 Months Ended |
Jun. 30, 2019 | |
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 June 30 Cumulative Gains Cumulative (Losses) on Net Actuarial Unrealized Gains Derivative Cumulative Foreign (Losses) and Prior (Losses) on Instruments Currency Translation Service (Costs) Marketable Equity Designated as (in millions) Adjustments and Credits Securities Cash Flow Hedges 2019 2018 2019 2018 2019 2018 2019 2018 Balance at March 31 $ (4,790) $ (3,119) $ (2,703) $ (2,498) $ — $ — $ 23 $ (116) Other comprehensive income (loss) before reclassifications 91 (1,359) 3 30 — — (2) 81 Amounts reclassified from accumulated other comprehensive income — — 23 31 — — (10) 37 Net current period comprehensive income (loss) 91 (1,359) 26 61 — — (12) 118 Balance at June 30 $ (4,699) $ (4,478) $ (2,677) $ (2,437) $ — $ — $ 11 $ 2 Six Months Ended June 30 Cumulative Gains Cumulative (Losses) on Net Actuarial Unrealized Gains Derivative Cumulative Foreign (Losses) and Prior (Losses) on Instruments Currency Translation Service (Costs) Marketable Equity Designated as (in millions) Adjustments and Credits Securities Cash Flow Hedges 2019 2018 2019 2018 2019 2018 2019 2018 Balance at December 31 , 2018 and 2017 $ (4,912) $ (3,452) $ (2,726) $ (2,521) $ — $ (5) $ 52 $ (84) Impact of adoption of new accounting standard — — — — — 5 — — Other comprehensive income (loss) before reclassifications 213 (1,026) 2 20 — — (19) 29 Amounts reclassified from accumulated other comprehensive income — — 47 64 — — (22) 57 Net current period comprehensive income (loss) 213 (1,026) 49 84 — — (41) 86 Balance at June 30 $ (4,699) $ (4,478) $ (2,677) $ (2,437) $ — $ — $ 11 $ 2 Reclassified amounts for foreign currency translation are recorded in the Condensed Consolidated Statement of Earnings as Net foreign exchange (gain) loss; gains (losses) on marketable equity securities as Other (income) expense, net and cash flow hedges as Cost of products sold. Net actuarial losses and prior service cost are included as a component of net periodic benefit plan costs; see Note 13 for additional details. |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 6 Months Ended |
Jun. 30, 2019 | |
Goodwill and Intangible Assets | Note 6 — Goodwill and Intangible Assets The total amount of goodwill reported was $23.3 billion at June 30, 2019 and December 31, 2018. The amount of goodwill related to reportable segments at June 30, 2019 was $3.1 billion for the Established Pharmaceutical Products segment, $286 million for the Nutritional Products segment, $3.7 billion for the Diagnostic Products segment, and $15.3 billion for the Cardiovascular and Neuromodulation Products segment. There was no reduction of goodwill relating to impairments in the first six months of 2019. The gross amount of amortizable intangible assets, primarily product rights and technology was $25.6 billion as of June 30, 2019 and $25.7 billion as of December 31, 2018, and accumulated amortization was $11.1 billion as of June 30, 2019 and $10.4 billion as of December 31, 2018. Abbott’s estimated annual amortization expense for intangible assets is approximately $2.0 billion in 2019, $2.1 billion in 2020, $2.0 billion in 2021, $2.0 billion in 2022 and $2.0 billion in 2023. Amortizable intangible assets are amortized over 2 to 20 years (weighted average 12 years). Indefinite-lived intangible assets, which relate to in-process research and development acquired in a business combination, were approximately $3.6 billion as of June 30, 2019 and December 31, 2018 . |
Restructuring Plans
Restructuring Plans | 6 Months Ended |
Jun. 30, 2019 | |
Restructuring Plans | Note 7 — Restructuring Plans From 2017 to 2019, Abbott management approved restructuring plans as part of the integration of the acquisitions of St. Jude Medical into the cardiovascular and neuromodulation segment, and Alere Inc. (Alere) into the diagnostics segment, in order to leverage economies of scale and reduce costs. In the first six months of 2019, charges of $36 million were recognized, of which $16 million is recorded in Cost of products sold, $2 million is recorded in Research and development and $18 million as Selling, general and administrative expense. The following summarizes the activity for the first six months of 2019 related to these actions and the status of the related accrual as of June 30, 2019: (in millions) Accrued balance at December 31, 2018 $ 41 Restructuring charges recorded in 2019 36 Payments and other adjustments (29) Accrued balance at June 30, 2019 $ 48 From 2016 to 2018, Abbott management approved plans to streamline operations in order to reduce costs and improve efficiencies in various Abbott businesses, including the nutritional, established pharmaceuticals and vascular businesses. The following summarizes the activity for the first six months of 2019 related to these restructuring actions and the status of the related accrual as of June 30, 2019: (in millions) Accrued balance at December 31, 2018 $ 70 Payments and other adjustments (13) Accrued balance at June 30, 2019 $ 57 |
Incentive Stock Programs
Incentive Stock Programs | 6 Months Ended |
Jun. 30, 2019 | |
Incentive Stock Programs | Note 8 — Incentive Stock Programs In the first six months of 2019, Abbott granted 4,501,185 stock options, 727,674 restricted stock awards and 6,483,388 restricted stock units under its incentive stock programs. At June 30, 2019, approximately 126 million shares were reserved for future grants. Information regarding the number of options outstanding and exercisable at June 30, 2019 is as follows: Outstanding Exercisable Number of shares 30,784,257 21,173,966 Weighted average remaining life ( years 6.7 5.7 Weighted average exercise price $ 48.39 $ 40.93 Aggregate intrinsic value ( in millions $ 1,099 $ 914 The total unrecognized share-based compensation cost at June 30, 2019 amounted to approximately $585 million which is expected to be recognized over the next three years. |
Debt and Lines of Credit
Debt and Lines of Credit | 6 Months Ended |
Jun. 30, 2019 | |
Debt and Lines of Credit | Note 9 — Debt and Lines of Credit On February 24, 2019, Abbott redeemed the $500 million outstanding principal amount of its 2.80% Notes due 2020. In February 2018, the board of directors authorized the early redemption of up to $5 |
Leases
Leases | 6 Months Ended |
Jun. 30, 2019 | |
Leases | Note 10 – Leases Leases where Abbott is the Lessee Abbott has entered into operating leases as the lessee for office space, manufacturing facilities, R&D laboratories, warehouses, vehicles and equipment. Finance leases are not significant. Abbott’s operating leases generally have remaining lease terms of 1 year to 10 years. Some leases include options to extend beyond the original lease term, generally up to 10 years and some include options to terminate early. These options have been included in the determination of the lease liability when it is reasonably certain that the option will be exercised. For all of its asset classes, Abbott elected the practical expedient allowed under FASB ASC No. 842, “Leases” to account for each lease component (e.g., the right to use office space) and the associated non-lease components (e.g., maintenance services) as a single lease component. Abbott also elected the short-term lease accounting policy for all asset classes; therefore, Abbott is not recognizing a lease liability or ROU asset for any lease that, at the commencement date, has a lease term of 12 months or less and does not include an option to purchase the underlying asset that Abbott is reasonably certain to exercise. As Abbott’s leases typically do not provide an implicit rate, the interest rate used to determine the present value of the payments under each lease typically reflects Abbott’s incremental borrowing rate based on information available at the lease commencement date. Abbott’s incremental borrowing rates at January 1, 2019 were used for operating leases that commenced prior to January 1, 2019. The following table provides information related to Abbott’s operating leases: Three Months Ended Six Months Ended (in millions) June 30, 2019 June 30, 2019 Operating lease cost (a) $ 80 $ 154 Cash paid for amounts included in the measurement of operating lease liabilities $ 63 $ 126 ROU assets arising from obtaining new operating lease obligations $ 63 $ 97 (a) Includes short-term lease expense and variable lease costs, which were immaterial in the three and six months ended June 30, 2019. The weighted average remaining lease term and discount rate for operating leases as of June 30, 2019 were 8 years and 4.2%, respectively. Future minimum lease payments under non-cancellable operating leases as of June 30, 2019 were as follows: (in millions) 2019 $ 123 2020 210 2021 158 2022 120 2023 88 Thereafter 343 Total future minimum lease payments – undiscounted 1,042 Less: imputed interest (169) Present value of lease liabilities $ 873 The following table summarizes the amounts and location of operating lease ROU assets and lease liabilities as of June 30, 2019: (in millions) June 30, 2019 Balance Sheet Caption Operating Lease - ROU Asset $ 850 Deferred income taxes and other assets Operating Lease Liability: Current $ 203 Other accrued liabilities Non-Current 670 Post-employment obligations, deferred income taxes and other long-term liabilities Total Liability $ 873 Leases where Abbott is the Lessor Certain assets, primarily Diagnostics instruments, are leased to customers under contractual arrangements that typically include an operating or sales-type lease as well as performance obligations for reagents and other consumables. Sales-type leases are not significant. Contract terms vary by customer and may include options to terminate the contract or options to extend the contract. Where instruments are provided under operating lease arrangements, some portion or the entire lease revenue may be variable and subject to subsequent non-lease component (e.g. reagent) sales. The allocation of revenue between the lease and non-lease components is based on stand-alone selling prices. Operating lease revenue represented less than 3 percent of Abbott’s total net sales in the three and six months ended June 30, 2019. Assets related to operating leases are reported within Net property and equipment on the Condensed Consolidated Balance Sheet. The original cost and the net book value of such assets were $2.8 billion and $1.1 billion, respectively, as of June 30, 2019. |
Financial Instruments, Derivati
Financial Instruments, Derivatives and Fair Value Measures | 6 Months Ended |
Jun. 30, 2019 | |
Financial Instruments, Derivatives and Fair Value Measures | Note 11 — Financial Instruments, Derivatives and Fair Value Measures Certain Abbott foreign subsidiaries enter into foreign currency forward exchange contracts to manage exposures to changes in foreign exchange rates 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 June 30, 2019 and December 31, 2018, Abbott held the gross notional amount of $10.5 billion and $13.6 billion, respectively, of such foreign currency forward exchange contracts. Abbott is a party to interest rate hedge contracts totaling approximately $2.9 billion at June 30, 2019 and December 31, 2018 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 June 30, 2019 and December 31, 2018: Fair Value - Assets Fair Value - Liabilities June 30, Dec. 31, June 30, Dec. 31, (in millions) 2019 2018 Balance Sheet Caption 2019 2018 Balance Sheet Caption Interest rate swaps designated as fair value hedges $ 39 $ — Deferred income taxes and other assets $ — $ 100 Post-employment obligations, deferred income taxes and other long-term liabilities Foreign currency forward exchange contracts: Hedging instruments 116 81 Prepaid expenses and other receivables 46 44 Other accrued liabilities Others not designated as hedges 63 33 Prepaid expenses and other receivables 33 51 Other accrued liabilities $ 218 $ 114 $ 79 $ 195 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 six months ended June 30, 2019 and 2018. Gain (loss) Recognized in Other Income (expense) and Gain (loss) Comprehensive Income (loss) Reclassified into Income Three Months Six Months Three Months Six Months Ended June 30 Ended June 30 Ended June 30 Ended June 30 Income Statement (in millions) 2019 2018 2019 2018 2019 2018 2019 2018 Caption Foreign currency forward exchange contracts designated as cash flow hedges $ (2) $ 113 $ (21) $ 27 $ 17 $ (53) $ 32 $ (83) Cost of products sold Interest rate swaps designated as fair value hedges n/a n/a n/a n/a 96 (31) 139 (137) Interest expense Gains of $26 million and losses of $2 million were recognized in the three months ended June 30, 2019 and 2018, respectively, related to foreign currency forward exchange contracts not designated as a hedge. Gains of $75 million and losses of $50 million were recognized in the six months ended June 30, 2019 and 2018, respectively, related to foreign currency forward exchange contracts not designated as a hedge. These amounts are reported in the Condensed Consolidated Statement of Earnings on the Net foreign exchange (gain) loss line. The interest rate swaps are designated as fair value hedges of the variability of the fair value of fixed-rate debt due to changes in the long-term benchmark interest rates. The hedged debt is marked to market, offsetting the effect of marking the interest rate swaps to market. The carrying values and fair values of certain financial instruments as of June 30, 2019 and December 31, 2018 are shown in the following table. The carrying values of all other financial instruments approximate their estimated fair values. The counterparties to financial instruments consist of select major international financial institutions. Abbott does not expect any losses from nonperformance by these counterparties. June 30, 2019 December 31, 2018 Carrying Fair Carrying Fair (in millions) Value Value Value Value Investment Securities: Equity securities $ 816 $ 816 $ 856 $ 856 Other 35 35 41 41 Total Long-term Debt (18,990) (21,264) (19,366) (19,871) Foreign Currency Forward Exchange Contracts: Receivable position 179 179 114 114 (Payable) position (79) (79) (95) (95) Interest Rate Hedge Contracts: Receivable position 39 39 — — (Payable) position — — (100) (100) The fair value of the debt was determined based on significant other observable inputs, including current interest rates. The following table summarizes the bases used to measure certain assets and liabilities at fair value on a recurring basis in the balance sheet: Basis of Fair Value Measurement Quoted Significant Prices in Other Significant Outstanding Active Observable Unobservable (in millions) Balances Markets Inputs Inputs June 30, 2019: Equity securities $ 332 $ 332 $ — $ — Interest rate swap derivative financial instruments 39 — 39 — Foreign currency forward exchange contracts 179 — 179 — Total Assets $ 550 $ 332 $ 218 $ — Fair value of hedged long-term debt $ 2,882 $ — $ 2,882 $ — Foreign currency forward exchange contracts 79 — 79 — Contingent consideration related to business combinations 76 — — 76 Total Liabilities $ 3,037 $ — $ 2,961 $ 76 December 31, 2018: Equity securities $ 320 $ 320 $ — $ — Foreign currency forward exchange contracts 114 — 114 — Total Assets $ 434 $ 320 $ 114 $ — Fair value of hedged long-term debt $ 2,743 $ — $ 2,743 $ — Interest rate swap derivative financial instruments 100 — 100 — Foreign currency forward exchange contracts 95 — 95 — Contingent consideration related to business combinations 71 — — 71 Total Liabilities $ 3,009 $ — $ 2,938 $ 71 The fair value of debt was determined based on the face value of the debt adjusted for the fair value of the interest rate swaps, which is based on a discounted cash flow analysis. The fair value of foreign currency forward exchange contracts is determined using a market approach, which utilizes values for comparable derivative instruments. The fair value of the contingent consideration was determined based on an independent appraisal adjusted for the time value of money and other changes in fair value. |
Litigation and Environmental Ma
Litigation and Environmental Matters | 6 Months Ended |
Jun. 30, 2019 | |
Litigation and Environmental Matters | Note 12 — Litigation and Environmental Matters Abbott has been identified as a potentially responsible party for investigation and cleanup costs at a number of locations in the United States and Puerto Rico under federal and state remediation laws and is investigating potential contamination at a number of company-owned locations. Abbott has recorded an estimated cleanup cost for each site for which management believes Abbott has a probable loss exposure. No individual site cleanup exposure is expected to exceed $4 million, and the aggregate cleanup exposure is not expected to exceed $10 million. Abbott is involved in various claims and legal proceedings, and Abbott estimates the range of possible loss for its legal proceedings and environmental exposures to be from approximately $90 million to $125 million. The recorded accrual balance at June 30, 2019 for these proceedings and exposures was approximately $110 million. This accrual represents management’s best estimate of probable loss, as defined by FASB ASC No. 450, “Contingencies.” Within the next year, legal proceedings may occur that may result in a change in the estimated loss accrued by Abbott. While it is not feasible to predict the outcome of all such proceedings and exposures with certainty, management believes that their ultimate disposition should not have a material adverse effect on Abbott’s financial position, cash flows, or results of operations. |
Post-Employment Benefits
Post-Employment Benefits | 6 Months Ended |
Jun. 30, 2019 | |
Post-Employment Benefits | Note 13 — Post-Employment Benefits Retirement plans consist of defined benefit, defined contribution, and medical and dental plans. Net periodic benefit costs, other than service costs, are recognized in the Other (income) expense, net line of the Condensed Consolidated Statement of Earnings. Net cost recognized in continuing operations for the three and six months ended June 30 for Abbott’s major defined benefit plans and post-employment medical and dental benefit plans is as follows: Defined Benefit Plans Medical and Dental Plans Three Months Six Months Three Months Six Months (in millions) Ended June 30 Ended June 30 Ended June 30 Ended June 30 2019 2018 2019 2018 2019 2018 2019 2018 Service cost - benefits earned during the period $ 61 $ 67 $ 125 $ 145 $ 6 $ 6 $ 12 $ 13 Interest cost on projected benefit obligations 85 77 169 155 13 12 26 24 Expected return on plan assets (178) (171) (356) (342) (7) (8) (14) (16) Net amortization of: Actuarial loss, net 33 49 66 103 5 9 11 17 Prior service cost (credit) 1 1 1 1 (8) (12) (16) (23) Net cost - continuing operations $ 2 $ 23 $ 5 $ 62 $ 9 $ 7 $ 19 $ 15 Abbott funds its domestic defined benefit plans according to IRS funding limitations. International pension plans are funded according to similar regulations. In the first six months of 2019 and 2018, $326 million and $58 million, respectively, were contributed to defined benefit plans and $11 million was contributed to the post-employment medical and dental benefit plans in each year. |
Taxes on Earnings
Taxes on Earnings | 6 Months Ended |
Jun. 30, 2019 | |
Taxes on Earnings | Note 14 — Taxes on Earnings Taxes on earnings from continuing operations reflect the estimated annual effective rates and include charges for interest and penalties. In the first six months of 2019, taxes on earnings from continuing operations include a $78 million reduction to the transition tax related to the Tax Cut and Jobs Act (TCJA) and approximately $90 million in excess tax benefits associated with share-based compensation. The $78 million reduction to the transition tax liability was the result of the issuance of final transition tax regulations by the U.S. Department of Treasury in the first quarter. This adjustment decreased the cumulative net tax expense related to the TCJA to $1.51 billion. In the first six months of 2018, taxes on earnings from continuing operations include approximately $71 million in excess tax benefits associated with share-based compensation and a $16 million adjustment to the transition tax liability for associated effects related to state tax. Earnings from discontinued operations, net of tax, in the first six months of 2018 reflect the recognition of $24 million of net tax benefits primarily as a result of the resolution of various tax positions related to prior years which decreased the gross amount of unrecognized tax benefits by $31 million. Tax authorities in various jurisdictions regularly review Abbott’s income tax filings. Abbott believes that it is reasonably possible that the recorded amount of gross unrecognized tax benefits may decrease between $185 million and $430 million, including cash adjustments, within the next twelve months as a result of concluding various domestic and international tax matters. In the U.S., Abbott’s federal income tax returns through 2016 are settled except for the federal income tax returns of the former Alere consolidated group which are settled through 2014 and the former St. Jude Medical consolidated group which are settled through 2013. |
Segment Information
Segment Information | 6 Months Ended |
Jun. 30, 2019 | |
Segment Information | Note 15 — Segment Information Abbott’s principal business is the discovery, development, manufacture and sale of a broad line of health care products. Abbott’s products are generally sold directly to retailers, wholesalers, hospitals, health care facilities, laboratories, physicians’ offices and government agencies throughout the world. Abbott’s reportable segments are as follows: Established Pharmaceutical Products Nutritional Products Diagnostic Products Cardiovascular and Neuromodulation Products Non-reportable segments include Diabetes Care. Abbott’s underlying accounting records are maintained on a legal entity basis for government and public reporting requirements. Segment disclosures are on a performance basis consistent with internal management reporting. Intersegment transfers of inventory are recorded at standard cost and are not a measure of segment operating earnings. The cost of some corporate functions and the cost of certain employee benefits are charged to segments at predetermined rates that approximate cost. Remaining costs, if any, are not allocated to segments. In addition, intangible asset amortization is not allocated to operating segments, and intangible assets and goodwill are not included in the measure of each segment’s assets. The following segment information has been prepared in accordance with the internal accounting policies of Abbott, as described above, and is not presented in accordance with generally accepted accounting principles applied to the consolidated financial statements. Net Sales to External Customers Operating Earnings Three Months Six Months Three Months Six Months Ended June 30 Ended June 30 Ended June 30 Ended June 30 (in millions) 2019 2018 2019 2018 2019 2018 2019 2018 Established Pharmaceutical Products $ 1,108 $ 1,129 $ 2,100 $ 2,173 $ 214 $ 208 $ 373 $ 375 Nutritional Products 1,875 1,858 3,667 3,614 447 424 827 789 Diagnostic Products 1,905 1,873 3,746 3,710 466 489 900 932 Cardiovascular and Neuromodulation Products 2,473 2,421 4,802 4,744 744 761 1,438 1,485 Total Reportable Segments 7,361 7,281 14,315 14,241 1,871 1,882 3,538 3,581 Other 618 486 1,199 916 Net sales $ 7,979 $ 7,767 $ 15,514 $ 15,157 Corporate functions and benefit plans costs (99) (140) (201) (292) Non-reportable segments 173 125 327 217 Net interest expense (146) (189) (294) (388) Share-based compensation (a) (114) (101) (340) (313) Amortization of intangible assets (483) (562) (969) (1,146) Other, net (b) (100) (238) (327) (451) Earnings from continuing operations before taxes $ 1,102 $ 777 $ 1,734 $ 1,208 (a) Approximately 50 percent of the annual net cost of share-based awards will typically be recognized in the first quarter due to the timing of the granting of share-based awards. (b) Other, net for the three and six months ended June 30, 2019 and 2018 includes restructuring charges and integration costs associated with the acquisitions of St. Jude Medical and Alere. Other, net for the six months ended June 30, 2019 includes a charge associated with an R&D asset acquired and immediately expensed. Other, net for the six months ended June 30, 2018 includes inventory step-up amortization. |
New Accounting Standards (Polic
New Accounting Standards (Policies) | 6 Months Ended |
Jun. 30, 2019 | |
New Accounting Standards | |
Recently Adopted Accounting Standards | Recently Adopted Accounting Standards In February 2016, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2016-02, Leases The new lease accounting standard does not have a material impact on the amounts reported in the Condensed Consolidated Statement of Earnings but does have a material impact on the amounts reported in the Condensed Consolidated Balance Sheet. Adoption of the new standard resulted in the recording of approximately $850 million of new right of use (ROU) assets and additional liabilities for operating leases on the Condensed Consolidated Balance Sheet as of January 1, 2019. |
Recent Accounting Standards Not Yet Adopted | Recent Accounting Standards Not Yet Adopted In June 2016, the FASB issued ASU 2016-13, Financial Instruments – Credit Losses |
Revenue (Tables)
Revenue (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Revenue | |
Schedule of reportable segment included under sales category | Three Months Ended June 30, 2019 Three Months Ended June 30, 2018 (in millions) U.S. Int’l Total U.S. Int’l Total Established Pharmaceutical Products — Key Emerging Markets $ — $ 853 $ 853 $ — $ 866 $ 866 Other — 255 255 — 263 263 Total — 1,108 1,108 — 1,129 1,129 Nutritionals — Pediatric Nutritionals 475 576 1,051 469 582 1,051 Adult Nutritionals 311 513 824 312 495 807 Total 786 1,089 1,875 781 1,077 1,858 Diagnostics — Core Laboratory 272 897 1,169 248 880 1,128 Molecular 38 69 107 38 84 122 Point of Care 113 32 145 108 31 139 Rapid Diagnostics 272 212 484 258 226 484 Total 695 1,210 1,905 652 1,221 1,873 Cardiovascular and Neuromodulation — Rhythm Management 273 275 548 285 286 571 Electrophysiology 190 240 430 170 230 400 Heart Failure 149 52 201 117 46 163 Vascular 270 460 730 284 466 750 Structural Heart 152 200 352 118 197 315 Neuromodulation 168 44 212 173 49 222 Total 1,202 1,271 2,473 1,147 1,274 2,421 Other 167 451 618 122 364 486 Total $ 2,850 $ 5,129 $ 7,979 $ 2,702 $ 5,065 $ 7,767 Six Months Ended June 30, 2019 Six Months Ended June 30, 2018 (in millions) U.S. Int’l Total U.S. Int’l Total Established Pharmaceutical Products — Key Emerging Markets $ — $ 1,605 $ 1,605 $ — $ 1,659 $ 1,659 Other — 495 495 — 514 514 Total — 2,100 2,100 — 2,173 2,173 Nutritionals — Pediatric Nutritionals 928 1,152 2,080 917 1,128 2,045 Adult Nutritionals 605 982 1,587 622 947 1,569 Total 1,533 2,134 3,667 1,539 2,075 3,614 Diagnostics — Core Laboratory 521 1,709 2,230 476 1,671 2,147 Molecular 78 137 215 77 163 240 Point of Care 222 58 280 218 62 280 Rapid Diagnostics 598 423 1,021 581 462 1,043 Total 1,419 2,327 3,746 1,352 2,358 3,710 Cardiovascular and Neuromodulation — Rhythm Management 525 537 1,062 571 563 1,134 Electrophysiology 364 471 835 330 433 763 Heart Failure 292 93 385 231 85 316 Vascular 536 903 1,439 570 919 1,489 Structural Heart 288 388 676 227 381 608 Neuromodulation 320 85 405 341 93 434 Total 2,325 2,477 4,802 2,270 2,474 4,744 Other 327 872 1,199 216 700 916 Total $ 5,604 $ 9,910 $ 15,514 $ 5,377 $ 9,780 $ 15,157 Note: Insertable Cardiac Monitor (ICM) sales, which had previously been reported in Electrophysiology, are now included in Rhythm Management. Historic periods have been adjusted to reflect this change. |
Schedule of changes in contract liabilities | (in millions) Contract Liabilities Balance at December 31, 2018 $ 259 Unearned revenue from cash received during the period 201 Revenue recognized that was included in contract liability balance at beginning of period (163) Balance at June 30, 2019 $ 297 |
Supplemental Financial Inform_2
Supplemental Financial Information (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Schedule of long-term investments | June 30, December 31, (in millions) 2019 2018 Long-term Investments: Equity securities $ 816 $ 856 Other 35 41 Total $ 851 $ 897 |
Changes in Accumulated Other _2
Changes in Accumulated Other Comprehensive Income (Loss) (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Schedule of accumulated other comprehensive income (loss), net of taxes | Three Months Ended June 30 Cumulative Gains Cumulative (Losses) on Net Actuarial Unrealized Gains Derivative Cumulative Foreign (Losses) and Prior (Losses) on Instruments Currency Translation Service (Costs) Marketable Equity Designated as (in millions) Adjustments and Credits Securities Cash Flow Hedges 2019 2018 2019 2018 2019 2018 2019 2018 Balance at March 31 $ (4,790) $ (3,119) $ (2,703) $ (2,498) $ — $ — $ 23 $ (116) Other comprehensive income (loss) before reclassifications 91 (1,359) 3 30 — — (2) 81 Amounts reclassified from accumulated other comprehensive income — — 23 31 — — (10) 37 Net current period comprehensive income (loss) 91 (1,359) 26 61 — — (12) 118 Balance at June 30 $ (4,699) $ (4,478) $ (2,677) $ (2,437) $ — $ — $ 11 $ 2 Six Months Ended June 30 Cumulative Gains Cumulative (Losses) on Net Actuarial Unrealized Gains Derivative Cumulative Foreign (Losses) and Prior (Losses) on Instruments Currency Translation Service (Costs) Marketable Equity Designated as (in millions) Adjustments and Credits Securities Cash Flow Hedges 2019 2018 2019 2018 2019 2018 2019 2018 Balance at December 31 , 2018 and 2017 $ (4,912) $ (3,452) $ (2,726) $ (2,521) $ — $ (5) $ 52 $ (84) Impact of adoption of new accounting standard — — — — — 5 — — Other comprehensive income (loss) before reclassifications 213 (1,026) 2 20 — — (19) 29 Amounts reclassified from accumulated other comprehensive income — — 47 64 — — (22) 57 Net current period comprehensive income (loss) 213 (1,026) 49 84 — — (41) 86 Balance at June 30 $ (4,699) $ (4,478) $ (2,677) $ (2,437) $ — $ — $ 11 $ 2 |
Restructuring Plans (Tables)
Restructuring Plans (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Restructuring Plan from 2017 to 2019, St Jude and Alere Integrations | |
Restructuring costs | |
Summary of restructuring activity | (in millions) Accrued balance at December 31, 2018 $ 41 Restructuring charges recorded in 2019 36 Payments and other adjustments (29) Accrued balance at June 30, 2019 $ 48 |
Restructuring Plan from 2016 to 2018 | |
Restructuring costs | |
Summary of restructuring activity | (in millions) Accrued balance at December 31, 2018 $ 70 Payments and other adjustments (13) Accrued balance at June 30, 2019 $ 57 |
Incentive Stock Programs (Table
Incentive Stock Programs (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Schedule of stock options outstanding and exercisable | Outstanding Exercisable Number of shares 30,784,257 21,173,966 Weighted average remaining life ( years 6.7 5.7 Weighted average exercise price $ 48.39 $ 40.93 Aggregate intrinsic value ( in millions $ 1,099 $ 914 |
Leases (Tables)
Leases (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Leases | |
Schedule of information related to operating leases | Three Months Ended Six Months Ended (in millions) June 30, 2019 June 30, 2019 Operating lease cost (a) $ 80 $ 154 Cash paid for amounts included in the measurement of operating lease liabilities $ 63 $ 126 ROU assets arising from obtaining new operating lease obligations $ 63 $ 97 (a) Includes short-term lease expense and variable lease costs, which were immaterial in the three and six months ended June 30, 2019. |
Schedule of future minimum lease payments | Future minimum lease payments under non-cancellable operating leases as of June 30, 2019 were as follows: (in millions) 2019 $ 123 2020 210 2021 158 2022 120 2023 88 Thereafter 343 Total future minimum lease payments – undiscounted 1,042 Less: imputed interest (169) Present value of lease liabilities $ 873 |
Schedule of operating lease balance sheet disclosure | (in millions) June 30, 2019 Balance Sheet Caption Operating Lease - ROU Asset $ 850 Deferred income taxes and other assets Operating Lease Liability: Current $ 203 Other accrued liabilities Non-Current 670 Post-employment obligations, deferred income taxes and other long-term liabilities Total Liability $ 873 |
Financial Instruments, Deriva_2
Financial Instruments, Derivatives and Fair Value Measures (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Summary of the amounts and location of certain derivative financial instruments | Fair Value - Assets Fair Value - Liabilities June 30, Dec. 31, June 30, Dec. 31, (in millions) 2019 2018 Balance Sheet Caption 2019 2018 Balance Sheet Caption Interest rate swaps designated as fair value hedges $ 39 $ — Deferred income taxes and other assets $ — $ 100 Post-employment obligations, deferred income taxes and other long-term liabilities Foreign currency forward exchange contracts: Hedging instruments 116 81 Prepaid expenses and other receivables 46 44 Other accrued liabilities Others not designated as hedges 63 33 Prepaid expenses and other receivables 33 51 Other accrued liabilities $ 218 $ 114 $ 79 $ 195 |
Schedule of derivatives gain (loss) in OCI and earnings | Gain (loss) Recognized in Other Income (expense) and Gain (loss) Comprehensive Income (loss) Reclassified into Income Three Months Six Months Three Months Six Months Ended June 30 Ended June 30 Ended June 30 Ended June 30 Income Statement (in millions) 2019 2018 2019 2018 2019 2018 2019 2018 Caption Foreign currency forward exchange contracts designated as cash flow hedges $ (2) $ 113 $ (21) $ 27 $ 17 $ (53) $ 32 $ (83) Cost of products sold Interest rate swaps designated as fair value hedges n/a n/a n/a n/a 96 (31) 139 (137) Interest expense |
Schedule of carrying values and fair values of certain financial instruments | June 30, 2019 December 31, 2018 Carrying Fair Carrying Fair (in millions) Value Value Value Value Investment Securities: Equity securities $ 816 $ 816 $ 856 $ 856 Other 35 35 41 41 Total Long-term Debt (18,990) (21,264) (19,366) (19,871) Foreign Currency Forward Exchange Contracts: Receivable position 179 179 114 114 (Payable) position (79) (79) (95) (95) Interest Rate Hedge Contracts: Receivable position 39 39 — — (Payable) position — — (100) (100) |
Schedule of assets and liabilities measured at fair value on a recurring basis | Basis of Fair Value Measurement Quoted Significant Prices in Other Significant Outstanding Active Observable Unobservable (in millions) Balances Markets Inputs Inputs June 30, 2019: Equity securities $ 332 $ 332 $ — $ — Interest rate swap derivative financial instruments 39 — 39 — Foreign currency forward exchange contracts 179 — 179 — Total Assets $ 550 $ 332 $ 218 $ — Fair value of hedged long-term debt $ 2,882 $ — $ 2,882 $ — Foreign currency forward exchange contracts 79 — 79 — Contingent consideration related to business combinations 76 — — 76 Total Liabilities $ 3,037 $ — $ 2,961 $ 76 December 31, 2018: Equity securities $ 320 $ 320 $ — $ — Foreign currency forward exchange contracts 114 — 114 — Total Assets $ 434 $ 320 $ 114 $ — Fair value of hedged long-term debt $ 2,743 $ — $ 2,743 $ — Interest rate swap derivative financial instruments 100 — 100 — Foreign currency forward exchange contracts 95 — 95 — Contingent consideration related to business combinations 71 — — 71 Total Liabilities $ 3,009 $ — $ 2,938 $ 71 |
Post-Employment Benefits (Table
Post-Employment Benefits (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Schedule of components of the net periodic benefit cost for the entity's major defined benefit plans and post-employment medical and dental benefit plans | Defined Benefit Plans Medical and Dental Plans Three Months Six Months Three Months Six Months (in millions) Ended June 30 Ended June 30 Ended June 30 Ended June 30 2019 2018 2019 2018 2019 2018 2019 2018 Service cost - benefits earned during the period $ 61 $ 67 $ 125 $ 145 $ 6 $ 6 $ 12 $ 13 Interest cost on projected benefit obligations 85 77 169 155 13 12 26 24 Expected return on plan assets (178) (171) (356) (342) (7) (8) (14) (16) Net amortization of: Actuarial loss, net 33 49 66 103 5 9 11 17 Prior service cost (credit) 1 1 1 1 (8) (12) (16) (23) Net cost - continuing operations $ 2 $ 23 $ 5 $ 62 $ 9 $ 7 $ 19 $ 15 |
Segment Information (Tables)
Segment Information (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Schedule of segment information - net sales and operating earnings | Net Sales to External Customers Operating Earnings Three Months Six Months Three Months Six Months Ended June 30 Ended June 30 Ended June 30 Ended June 30 (in millions) 2019 2018 2019 2018 2019 2018 2019 2018 Established Pharmaceutical Products $ 1,108 $ 1,129 $ 2,100 $ 2,173 $ 214 $ 208 $ 373 $ 375 Nutritional Products 1,875 1,858 3,667 3,614 447 424 827 789 Diagnostic Products 1,905 1,873 3,746 3,710 466 489 900 932 Cardiovascular and Neuromodulation Products 2,473 2,421 4,802 4,744 744 761 1,438 1,485 Total Reportable Segments 7,361 7,281 14,315 14,241 1,871 1,882 3,538 3,581 Other 618 486 1,199 916 Net sales $ 7,979 $ 7,767 $ 15,514 $ 15,157 Corporate functions and benefit plans costs (99) (140) (201) (292) Non-reportable segments 173 125 327 217 Net interest expense (146) (189) (294) (388) Share-based compensation (a) (114) (101) (340) (313) Amortization of intangible assets (483) (562) (969) (1,146) Other, net (b) (100) (238) (327) (451) Earnings from continuing operations before taxes $ 1,102 $ 777 $ 1,734 $ 1,208 (a) Approximately 50 percent of the annual net cost of share-based awards will typically be recognized in the first quarter due to the timing of the granting of share-based awards. (b) Other, net for the three and six months ended June 30, 2019 and 2018 includes restructuring charges and integration costs associated with the acquisitions of St. Jude Medical and Alere. Other, net for the six months ended June 30, 2019 includes a charge associated with an R&D asset acquired and immediately expensed. Other, net for the six months ended June 30, 2018 includes inventory step-up amortization. |
New Accounting Standards (Detai
New Accounting Standards (Details) - USD ($) $ in Millions | Jan. 01, 2019 | Jun. 30, 2019 |
Recently Adopted Accounting Standards | ||
Lease, Practical Expedients, Package [true false] | true | |
Operating Lease - ROU Asset | $ 850 | |
Lease liabilities | $ 873 | |
ASU 2016-02 | Restatement Adjustment | ||
Recently Adopted Accounting Standards | ||
Operating Lease - ROU Asset | $ 850 | |
Lease liabilities | $ 850 |
Revenue (Details)
Revenue (Details) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019USD ($) | Jun. 30, 2018USD ($) | Jun. 30, 2019USD ($)segment | Jun. 30, 2018USD ($) | |
Revenue | ||||
Number of reportable segments | segment | 4 | |||
Net sales | $ 7,979 | $ 7,767 | $ 15,514 | $ 15,157 |
U.S. | ||||
Revenue | ||||
Net sales | 2,850 | 2,702 | 5,604 | 5,377 |
Int'l | ||||
Revenue | ||||
Net sales | 5,129 | 5,065 | 9,910 | 9,780 |
Established Pharmaceutical Products | ||||
Revenue | ||||
Net sales | 1,108 | 1,129 | 2,100 | 2,173 |
Established Pharmaceutical Products | Int'l | ||||
Revenue | ||||
Net sales | 1,108 | 1,129 | 2,100 | 2,173 |
Nutritional Products | ||||
Revenue | ||||
Net sales | 1,875 | 1,858 | 3,667 | 3,614 |
Nutritional Products | U.S. | ||||
Revenue | ||||
Net sales | 786 | 781 | 1,533 | 1,539 |
Nutritional Products | Int'l | ||||
Revenue | ||||
Net sales | 1,089 | 1,077 | 2,134 | 2,075 |
Diagnostic Products | ||||
Revenue | ||||
Net sales | 1,905 | 1,873 | 3,746 | 3,710 |
Diagnostic Products | U.S. | ||||
Revenue | ||||
Net sales | 695 | 652 | 1,419 | 1,352 |
Diagnostic Products | Int'l | ||||
Revenue | ||||
Net sales | 1,210 | 1,221 | 2,327 | 2,358 |
Cardiovascular and Neuromodulation Products | ||||
Revenue | ||||
Net sales | 2,473 | 2,421 | 4,802 | 4,744 |
Cardiovascular and Neuromodulation Products | U.S. | ||||
Revenue | ||||
Net sales | 1,202 | 1,147 | 2,325 | 2,270 |
Cardiovascular and Neuromodulation Products | Int'l | ||||
Revenue | ||||
Net sales | 1,271 | 1,274 | 2,477 | 2,474 |
Other | ||||
Revenue | ||||
Net sales | 618 | 486 | 1,199 | 916 |
Other | U.S. | ||||
Revenue | ||||
Net sales | 167 | 122 | 327 | 216 |
Other | Int'l | ||||
Revenue | ||||
Net sales | 451 | 364 | 872 | 700 |
Key Emerging Markets | Established Pharmaceutical Products | ||||
Revenue | ||||
Net sales | 853 | 866 | 1,605 | 1,659 |
Key Emerging Markets | Established Pharmaceutical Products | Int'l | ||||
Revenue | ||||
Net sales | 853 | 866 | 1,605 | 1,659 |
Other | Established Pharmaceutical Products | ||||
Revenue | ||||
Net sales | 255 | 263 | 495 | 514 |
Other | Established Pharmaceutical Products | Int'l | ||||
Revenue | ||||
Net sales | 255 | 263 | 495 | 514 |
Pediatric Nutritionals | Nutritional Products | ||||
Revenue | ||||
Net sales | 1,051 | 1,051 | 2,080 | 2,045 |
Pediatric Nutritionals | Nutritional Products | U.S. | ||||
Revenue | ||||
Net sales | 475 | 469 | 928 | 917 |
Pediatric Nutritionals | Nutritional Products | Int'l | ||||
Revenue | ||||
Net sales | 576 | 582 | 1,152 | 1,128 |
Adult Nutritionals | Nutritional Products | ||||
Revenue | ||||
Net sales | 824 | 807 | 1,587 | 1,569 |
Adult Nutritionals | Nutritional Products | U.S. | ||||
Revenue | ||||
Net sales | 311 | 312 | 605 | 622 |
Adult Nutritionals | Nutritional Products | Int'l | ||||
Revenue | ||||
Net sales | 513 | 495 | 982 | 947 |
Core Laboratory | Diagnostic Products | ||||
Revenue | ||||
Net sales | 1,169 | 1,128 | 2,230 | 2,147 |
Core Laboratory | Diagnostic Products | U.S. | ||||
Revenue | ||||
Net sales | 272 | 248 | 521 | 476 |
Core Laboratory | Diagnostic Products | Int'l | ||||
Revenue | ||||
Net sales | 897 | 880 | 1,709 | 1,671 |
Molecular | Diagnostic Products | ||||
Revenue | ||||
Net sales | 107 | 122 | 215 | 240 |
Molecular | Diagnostic Products | U.S. | ||||
Revenue | ||||
Net sales | 38 | 38 | 78 | 77 |
Molecular | Diagnostic Products | Int'l | ||||
Revenue | ||||
Net sales | 69 | 84 | 137 | 163 |
Point of Care | Diagnostic Products | ||||
Revenue | ||||
Net sales | 145 | 139 | 280 | 280 |
Point of Care | Diagnostic Products | U.S. | ||||
Revenue | ||||
Net sales | 113 | 108 | 222 | 218 |
Point of Care | Diagnostic Products | Int'l | ||||
Revenue | ||||
Net sales | 32 | 31 | 58 | 62 |
Rapid Diagnostics | Diagnostic Products | ||||
Revenue | ||||
Net sales | 484 | 484 | 1,021 | 1,043 |
Rapid Diagnostics | Diagnostic Products | U.S. | ||||
Revenue | ||||
Net sales | 272 | 258 | 598 | 581 |
Rapid Diagnostics | Diagnostic Products | Int'l | ||||
Revenue | ||||
Net sales | 212 | 226 | 423 | 462 |
Rhythm Management | Cardiovascular and Neuromodulation Products | ||||
Revenue | ||||
Net sales | 548 | 571 | 1,062 | 1,134 |
Rhythm Management | Cardiovascular and Neuromodulation Products | U.S. | ||||
Revenue | ||||
Net sales | 273 | 285 | 525 | 571 |
Rhythm Management | Cardiovascular and Neuromodulation Products | Int'l | ||||
Revenue | ||||
Net sales | 275 | 286 | 537 | 563 |
Electrophysiology | Cardiovascular and Neuromodulation Products | ||||
Revenue | ||||
Net sales | 430 | 400 | 835 | 763 |
Electrophysiology | Cardiovascular and Neuromodulation Products | U.S. | ||||
Revenue | ||||
Net sales | 190 | 170 | 364 | 330 |
Electrophysiology | Cardiovascular and Neuromodulation Products | Int'l | ||||
Revenue | ||||
Net sales | 240 | 230 | 471 | 433 |
Heart Failure | Cardiovascular and Neuromodulation Products | ||||
Revenue | ||||
Net sales | 201 | 163 | 385 | 316 |
Heart Failure | Cardiovascular and Neuromodulation Products | U.S. | ||||
Revenue | ||||
Net sales | 149 | 117 | 292 | 231 |
Heart Failure | Cardiovascular and Neuromodulation Products | Int'l | ||||
Revenue | ||||
Net sales | 52 | 46 | 93 | 85 |
Vascular | Cardiovascular and Neuromodulation Products | ||||
Revenue | ||||
Net sales | 730 | 750 | 1,439 | 1,489 |
Vascular | Cardiovascular and Neuromodulation Products | U.S. | ||||
Revenue | ||||
Net sales | 270 | 284 | 536 | 570 |
Vascular | Cardiovascular and Neuromodulation Products | Int'l | ||||
Revenue | ||||
Net sales | 460 | 466 | 903 | 919 |
Structural Heart | Cardiovascular and Neuromodulation Products | ||||
Revenue | ||||
Net sales | 352 | 315 | 676 | 608 |
Structural Heart | Cardiovascular and Neuromodulation Products | U.S. | ||||
Revenue | ||||
Net sales | 152 | 118 | 288 | 227 |
Structural Heart | Cardiovascular and Neuromodulation Products | Int'l | ||||
Revenue | ||||
Net sales | 200 | 197 | 388 | 381 |
Neuromodulation | Cardiovascular and Neuromodulation Products | ||||
Revenue | ||||
Net sales | 212 | 222 | 405 | 434 |
Neuromodulation | Cardiovascular and Neuromodulation Products | U.S. | ||||
Revenue | ||||
Net sales | 168 | 173 | 320 | 341 |
Neuromodulation | Cardiovascular and Neuromodulation Products | Int'l | ||||
Revenue | ||||
Net sales | $ 44 | $ 49 | $ 85 | $ 93 |
Revenue - Remaining Performance
Revenue - Remaining Performance Obligations (Details) $ in Millions | 6 Months Ended |
Jun. 30, 2019USD ($) | |
Diagnostic Products | |
Remaining Performance Obligations | |
Remaining performance obligations | $ 3,100 |
Cardiovascular and Neuromodulation Products | |
Remaining Performance Obligations | |
Remaining performance obligations | $ 375 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2019-07-01 | |
Remaining Performance Obligations | |
Expected timing of satisfication 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]: 2021-07-01 | |
Remaining Performance Obligations | |
Expected timing of satisfication period (in months) | 12 months |
Percentage of remaining performance obligation expected to be recognized in period | 16.00% |
Revenue - Practical Expedient (
Revenue - Practical Expedient (Details) | 6 Months Ended |
Jun. 30, 2019 | |
Revenue | |
Practical expedient in remaining performance obligations related to contracts | true |
Revenue - Other Contract Assets
Revenue - Other Contract Assets and Liabilities (Details) $ in Millions | 6 Months Ended |
Jun. 30, 2019USD ($) | |
Contract Liabilities | |
Balance at December 31, 2018 | $ 259 |
Unearned revenue from cash received during the period | 201 |
Revenue recognized that was included in contract liability balance at beginning of period | (163) |
Balance at June 30, 2019 | $ 297 |
Supplemental Financial Inform_3
Supplemental Financial Information - Income Statement (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Condensed Income Statements, Captions [Line Items] | ||||
Earnings from continuing operations allocated to common shares | $ 1,000 | $ 714 | $ 1,668 | $ 1,121 |
Net earnings allocated to common shares | $ 1,000 | $ 730 | $ 1,668 | $ 1,144 |
Supplemental Financial Inform_4
Supplemental Financial Information - Cash Flows (Details) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Cash flow disclosures | ||
Payment of cash taxes | $ 615 | $ 425 |
Defined Benefit Plans | ||
Cash flow disclosures | ||
Pension contributions | $ 326 | $ 58 |
Supplemental Financial Inform_5
Supplemental Financial Information - Investments (Details) - USD ($) $ in Millions | Jun. 30, 2019 | Dec. 31, 2018 |
Investments | ||
Long-term Investments | $ 851 | $ 897 |
Equity method investments carrying value | 325 | |
Equity method investments fair value not determinable | 160 | |
Unrealized gain | 50 | |
Equity securities | ||
Investments | ||
Long-term Investments | 816 | 856 |
Other | ||
Investments | ||
Long-term Investments | 35 | $ 41 |
St Jude Medical | Equity securities | ||
Investments | ||
Securities in mutual funds held in a rabbi trust | $ 320 |
Supplemental Financial Inform_6
Supplemental Financial Information - General (Details) - Cephea Valve Technologies, Inc $ in Millions | 3 Months Ended |
Mar. 31, 2019USD ($) | |
Business acquisitions | |
Research & development (R&D) asset | $ 102 |
Research & development expense | $ 102 |
Changes in Accumulated Other _3
Changes in Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Jan. 01, 2018 | |
Changes in accumulated other comprehensive income (loss), net of income taxes | |||||
Beginning of the period | $ 30,524 | ||||
Other comprehensive income (loss) | $ 105 | $ (1,180) | 221 | $ (856) | |
End of the period | 31,686 | 31,686 | |||
Cumulative Foreign Currency Translation Adjustments | |||||
Changes in accumulated other comprehensive income (loss), net of income taxes | |||||
Beginning of the period | (4,790) | (3,119) | (4,912) | (3,452) | |
Other comprehensive income (loss) before reclassifications | 91 | (1,359) | 213 | (1,026) | |
Other comprehensive income (loss) | 91 | (1,359) | 213 | (1,026) | |
End of the period | (4,699) | (4,478) | (4,699) | (4,478) | |
Net Actuarial (Losses) and Prior Service (Costs) and Credits | |||||
Changes in accumulated other comprehensive income (loss), net of income taxes | |||||
Beginning of the period | (2,703) | (2,498) | (2,726) | (2,521) | |
Other comprehensive income (loss) before reclassifications | 3 | 30 | 2 | 20 | |
Amounts reclassified from accumulated other comprehensive income | 23 | 31 | 47 | 64 | |
Other comprehensive income (loss) | 26 | 61 | 49 | 84 | |
End of the period | (2,677) | (2,437) | (2,677) | (2,437) | |
Cumulative Unrealized Gains (Losses) on Marketable Equity Securities | |||||
Changes in accumulated other comprehensive income (loss), net of income taxes | |||||
Beginning of the period | (5) | ||||
Impact of adoption of new accounting standard | $ 5 | ||||
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 | 23 | (116) | 52 | (84) | |
Other comprehensive income (loss) before reclassifications | (2) | 81 | (19) | 29 | |
Amounts reclassified from accumulated other comprehensive income | (10) | 37 | (22) | 57 | |
Other comprehensive income (loss) | (12) | 118 | (41) | 86 | |
End of the period | $ 11 | $ 2 | $ 11 | $ 2 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets - Goodwill (Details) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2019 | Dec. 31, 2018 | |
Goodwill and Intangible Assets | ||
Goodwill | $ 23,329 | $ 23,254 |
Amount of reductions of goodwill relating to impairments | 0 | |
Established Pharmaceutical Products | ||
Goodwill and Intangible Assets | ||
Goodwill | 3,100 | |
Nutritional Products | ||
Goodwill and Intangible Assets | ||
Goodwill | 286 | |
Diagnostic Products | ||
Goodwill and Intangible Assets | ||
Goodwill | 3,700 | |
Cardiovascular and Neuromodulation Products | ||
Goodwill and Intangible Assets | ||
Goodwill | $ 15,300 |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets - Intangible Assets (Details) - USD ($) $ in Billions | 6 Months Ended | |
Jun. 30, 2019 | Dec. 31, 2018 | |
Goodwill and Intangible Assets | ||
Gross amount of amortizable intangible assets | $ 25.6 | $ 25.7 |
Accumulated amortization of intangible assets | 11.1 | 10.4 |
Estimated annual amortization expense, intangible assets, 2019 | 2 | |
Estimated annual amortization expense, intangible assets, 2020 | 2.1 | |
Estimated annual amortization expense, intangible assets, 2021 | 2 | |
Estimated annual amortization expense, intangible assets, 2022 | 2 | |
Estimated annual amortization expense, intangible assets, 2023 | 2 | |
Indefinite-lived intangible assets related to in-process R&D acquired in a business combination | $ 3.6 | $ 3.6 |
Minimum | ||
Goodwill and Intangible Assets | ||
Amortization period of intangible assets | 2 years | |
Maximum | ||
Goodwill and Intangible Assets | ||
Amortization period of intangible assets | 20 years | |
Weighted average | ||
Goodwill and Intangible Assets | ||
Amortization period of intangible assets | 12 years |
Restructuring Plans (Details)
Restructuring Plans (Details) $ in Millions | 6 Months Ended |
Jun. 30, 2019USD ($) | |
Restructuring Plan from 2017 to 2019, St Jude and Alere Integrations | |
Restructuring costs | |
Accrued balance at beginning of the period | $ 41 |
Restructuring charges | 36 |
Payments and other adjustments | (29) |
Accrued balance at end of the period | 48 |
Restructuring Plan from 2017 to 2019, St Jude and Alere Integrations | Cost of products sold | |
Restructuring costs | |
Restructuring charges | 16 |
Restructuring Plan from 2017 to 2019, St Jude and Alere Integrations | Research and development | |
Restructuring costs | |
Restructuring charges | 2 |
Restructuring Plan from 2017 to 2019, St Jude and Alere Integrations | Selling, general and administrative expense | |
Restructuring costs | |
Restructuring charges | 18 |
Restructuring Plan from 2016 to 2018 | |
Restructuring costs | |
Accrued balance at beginning of the period | 70 |
Payments and other adjustments | (13) |
Accrued balance at end of the period | $ 57 |
Incentive Stock Programs - Gene
Incentive Stock Programs - General (Details) | 6 Months Ended |
Jun. 30, 2019shares | |
Share-based Compensation Arrangement by Share-based Payment Award | |
Incentive stock programs, shares reserved for future grants | 126,000,000 |
Stock options | |
Share-based Compensation Arrangement by Share-based Payment Award | |
Stock options granted during the period (in shares) | 4,501,185 |
Restricted stock awards | |
Share-based Compensation Arrangement by Share-based Payment Award | |
Grants in period, restricted stock (in shares) | 727,674 |
Restricted stock units | |
Share-based Compensation Arrangement by Share-based Payment Award | |
Awards and units granted during period (in shares) | 6,483,388 |
Incentive Stock Programs - Opti
Incentive Stock Programs - Options Activity (Details) $ / shares in Units, $ in Millions | 6 Months Ended |
Jun. 30, 2019USD ($)$ / sharesshares | |
Stock Options Weighted Average Remaining Life (Years) | |
Total unrecognized compensation cost | $ 585 |
Total unrecognized compensation cost, recognition period | 3 years |
Stock options | |
Share-based Compensation Arrangement by Share-based Payment Award | |
Stock options outstanding, number of shares | shares | 30,784,257 |
Exercisable options, number of shares | shares | 21,173,966 |
Stock options outstanding, weighted-average exercise price (in dollars per share) | $ / shares | $ 48.39 |
Exercisable options, weighted-average exercise price (in dollars per share) | $ / shares | $ 40.93 |
Stock Options Weighted Average Remaining Life (Years) | |
Stock options outstanding, weighted-average remaining life | 6 years 8 months 12 days |
Exercisable options, weighted-average remaining life | 5 years 8 months 12 days |
Aggregate intrinsic value of options outstanding | $ 1,099 |
Aggregate intrinsic value of options exercisable | $ 914 |
Debt and Lines of Credit (Detai
Debt and Lines of Credit (Details) - USD ($) $ in Millions | Feb. 24, 2019 | Jun. 30, 2018 | Dec. 31, 2018 | Jun. 30, 2019 | Feb. 28, 2018 |
Debt and Lines of Credit | |||||
Long-terms authorized for redemption | $ 5,000 | ||||
Repayments of other debt | $ 3,800 | ||||
Authorization available for redemption of debt | $ 700 | ||||
Net loss on extinguishment of debt | $ 14 | ||||
2.80% Notes, due 2020 | |||||
Debt and Lines of Credit | |||||
Repayments of debt | $ 500 | ||||
Interest rate percentage | 2.80% | 2.80% |
Leases - Operating Leases as Le
Leases - Operating Leases as Lessee (Details) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019USD ($) | Jun. 30, 2019USD ($) | |||
Lessee, Lease, Description | ||||
Options to extend the lease term | true | |||
Operating lease renewal term | 10 years | 10 years | ||
Options to terminate the lease early | true | true | ||
Lease, Cost | ||||
Operating lease cost | $ 80 | [1] | $ 154 | [1] |
Cash paid for amounts included in the measurement of operating lease liabilities | 63 | 126 | ||
ROU assets arising from obtaining new operating lease obligations | $ 63 | $ 97 | ||
Weighted average remaining lease term - operating leases | 8 years | 8 years | ||
Weighted average discount rate - operating leases | 4.20% | 4.20% | ||
Minimum | ||||
Lessee, Lease, Description | ||||
Operating lease contract term | 1 year | 1 year | ||
Maximum | ||||
Lessee, Lease, Description | ||||
Operating lease contract term | 10 years | 10 years | ||
[1] | Includes short-term lease expense and variable lease costs, which were immaterial in the three and six months ended June 30, 2019. |
Leases - Future Minimum Lease P
Leases - Future Minimum Lease Payments (Details) $ in Millions | Jun. 30, 2019USD ($) |
Operating Lease Liabilities, Payments Due | |
2019 | $ 123 |
2020 | 210 |
2021 | 158 |
2022 | 120 |
2023 | 88 |
Thereafter | 343 |
Total future minimum lease payments - undiscounted | 1,042 |
Less: imputed interest | (169) |
Present value of lease liabilities | $ 873 |
Leases - Amounts and Location o
Leases - Amounts and Location of Operating Lease ROU Assets And Lease Liabilities (Details) $ in Millions | Jun. 30, 2019USD ($) |
Assets and Liabilities, Lessee | |
Operating Lease - ROU Asset | $ 850 |
Operating Lease, Assets (Balance Sheet Location) | abt:DeferredIncomeTaxesandOtherAssets |
Operating Lease Liability - Current | $ 203 |
Operating Lease, Current Liabilities (Balance Sheet Location) | us-gaap:AccruedLiabilities |
Operating Lease Liability - Non-Current | $ 670 |
Operating Lease, Non-current Liabilities (Balance Sheet Location) | abt:Post-EmploymentObligationsDeferredIncomeTaxesandOtherLong-termLiabilities |
Present value of lease liabilities | $ 873 |
Lease - Lessor Lease Descriptio
Lease - Lessor Lease Description (Details) $ in Billions | 3 Months Ended | 6 Months Ended |
Jun. 30, 2019USD ($) | Jun. 30, 2019USD ($) | |
Leases where Abbott is the Lessor | ||
Operating Lease Asset, Original Cost | $ 2.8 | $ 2.8 |
Operating Lease Asset, Net Book Value | $ 1.1 | $ 1.1 |
Maximum | ||
Leases where Abbott is the Lessor | ||
Percentage of operating lease revenue to net sales | 3.00% | 3.00% |
Financial Instruments, Deriva_3
Financial Instruments, Derivatives and Fair Value Measures - Contracts (Details) - USD ($) $ in Billions | 6 Months Ended | |
Jun. 30, 2019 | Dec. 31, 2018 | |
Designated as hedging instrument | Foreign currency forward exchange contracts | Cash flow hedges | ||
Derivative instruments, notional amount and fair value | ||
Gross notional amount | $ 6 | $ 5.1 |
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 | ||
Derivative instruments, notional amount and fair value | ||
Gross notional amount | $ 2.9 | 2.9 |
Not designated as hedging instrument | Foreign currency forward exchange contracts | ||
Derivative instruments, notional amount and fair value | ||
Gross notional amount | $ 10.5 | $ 13.6 |
Financial Instruments, Deriva_4
Financial Instruments, Derivatives and Fair Value Measures - Location of Derivative Instruments (Details) - USD ($) $ in Millions | Jun. 30, 2019 | Dec. 31, 2018 |
Derivative instruments, notional amount and fair value | ||
Fair Value - Assets | $ 218 | $ 114 |
Fair Value - Liabilities | 79 | 195 |
Designated as hedging instrument | Interest rate swaps | Deferred income taxes and other assets | Fair value hedges | ||
Derivative instruments, notional amount and fair value | ||
Fair Value - Assets | 39 | |
Designated as hedging instrument | Interest rate swaps | Post-employment obligations, deferred income taxes and other long-term liabilities | Fair value hedges | ||
Derivative instruments, notional amount and fair value | ||
Fair Value - Liabilities | 100 | |
Designated as hedging instrument | Foreign currency forward exchange contracts | Prepaid expenses and other receivables | ||
Derivative instruments, notional amount and fair value | ||
Fair Value - Assets | 116 | 81 |
Designated as hedging instrument | Foreign currency forward exchange contracts | Other accrued liabilities | ||
Derivative instruments, notional amount and fair value | ||
Fair Value - Liabilities | 46 | 44 |
Not designated as hedging instrument | Foreign currency forward exchange contracts | Prepaid expenses and other receivables | ||
Derivative instruments, notional amount and fair value | ||
Fair Value - Assets | 63 | 33 |
Not designated as hedging instrument | Foreign currency forward exchange contracts | Other accrued liabilities | ||
Derivative instruments, notional amount and fair value | ||
Fair Value - Liabilities | $ 33 | $ 51 |
Financial Instruments, Deriva_5
Financial Instruments, Derivatives and Fair Value Measures - Gain or Loss (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Gain (loss) on derivatives | ||||
Income (expense) and (Loss) Reclassified into Income | $ 26 | $ (2) | $ 75 | $ (50) |
Interest rate swaps | Fair value hedges | Designated as hedging instrument | Interest expense | ||||
Gain (loss) on derivatives | ||||
Income (expense) and (Loss) Reclassified into Income | 96 | (31) | 139 | (137) |
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) | (2) | 113 | (21) | 27 |
Income (expense) and (Loss) Reclassified into Income | $ 17 | $ (53) | $ 32 | $ (83) |
Financial Instruments, Deriva_6
Financial Instruments, Derivatives and Fair Value Measures - Carrying Value and Fair Value (Details) - USD ($) $ in Millions | Jun. 30, 2019 | Dec. 31, 2018 |
Fair value, asset and liability measures | ||
Long-term Investments | $ 851 | $ 897 |
Equity securities | ||
Fair value, asset and liability measures | ||
Long-term Investments | 816 | 856 |
Carrying value | ||
Fair value, asset and liability measures | ||
Total Long-Term Debt | (18,990) | (19,366) |
Foreign currency forward exchange contracts, receivable position | 179 | 114 |
Foreign currency forward exchange contracts, (payable) position | (79) | (95) |
Interest rate hedge contracts, receivable position | 39 | |
Interest rate hedge contract, (payable) position | (100) | |
Carrying value | Equity securities | ||
Fair value, asset and liability measures | ||
Long-term Investments | 816 | 856 |
Carrying value | Other | ||
Fair value, asset and liability measures | ||
Long-term Investments | 35 | 41 |
Fair value | ||
Fair value, asset and liability measures | ||
Total Long-Term Debt | (21,264) | (19,871) |
Foreign currency forward exchange contracts, receivable position | 179 | 114 |
Foreign currency forward exchange contracts, (payable) position | (79) | (95) |
Interest rate hedge contracts, receivable position | 39 | |
Interest rate hedge contract, (payable) position | (100) | |
Fair value | Equity securities | ||
Fair value, asset and liability measures | ||
Long-term Investments | 816 | 856 |
Fair value | Other | ||
Fair value, asset and liability measures | ||
Long-term Investments | $ 35 | $ 41 |
Financial Instruments, Deriva_7
Financial Instruments, Derivatives and Fair Value Measures - Bases of Measurement (Details) - Recurring - USD ($) $ in Millions | Jun. 30, 2019 | Dec. 31, 2018 |
Fair value, asset and liability measures | ||
Equity securities | $ 332 | $ 320 |
Interest rate swap derivative financial instruments, assets | 39 | |
Foreign currency forward exchange contracts | 179 | 114 |
Total Assets | 550 | 434 |
Fair value of hedged long-term debt | 2,882 | 2,743 |
Interest rate swap financial instruments, liabilities | 100 | |
Foreign currency forward exchange contracts | 79 | 95 |
Contingent consideration related to business combinations | 76 | 71 |
Total Liabilities | 3,037 | 3,009 |
Quoted Prices in Active Markets | ||
Fair value, asset and liability measures | ||
Equity securities | 332 | 320 |
Total Assets | 332 | 320 |
Significant Other Observable Inputs | ||
Fair value, asset and liability measures | ||
Interest rate swap derivative financial instruments, assets | 39 | |
Foreign currency forward exchange contracts | 179 | 114 |
Total Assets | 218 | 114 |
Fair value of hedged long-term debt | 2,882 | 2,743 |
Interest rate swap financial instruments, liabilities | 100 | |
Foreign currency forward exchange contracts | 79 | 95 |
Total Liabilities | 2,961 | 2,938 |
Significant Unobservable Inputs | ||
Fair value, asset and liability measures | ||
Contingent consideration related to business combinations | 76 | 71 |
Total Liabilities | $ 76 | $ 71 |
Litigation and Environmental _2
Litigation and Environmental Matters (Details) $ in Millions | Jun. 30, 2019USD ($) |
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 | 110 |
Legal proceedings and environmental exposures | Minimum | |
Loss Contingencies | |
Estimation of possible loss | 90 |
Legal proceedings and environmental exposures | Maximum | |
Loss Contingencies | |
Estimation of possible loss | $ 125 |
Post-Employment Benefits - Gene
Post-Employment Benefits - General (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Defined Benefit Plans | ||||
Defined benefit plan net periodic benefit cost | ||||
Service cost - benefits earned during the period | $ 61 | $ 67 | $ 125 | $ 145 |
Interest cost on projected benefit obligations | 85 | 77 | 169 | 155 |
Expected return on plans assets | (178) | (171) | (356) | (342) |
Net amortization of: | ||||
Actuarial loss, net | 33 | 49 | 66 | 103 |
Prior service cost (credit) | 1 | 1 | 1 | 1 |
Net cost - continuing operations | 2 | 23 | 5 | 62 |
Post-employment Obligations and Other Long-term Liabilities: | ||||
Company contributions | 326 | 58 | ||
Medical and Dental Plans | ||||
Defined benefit plan net periodic benefit cost | ||||
Service cost - benefits earned during the period | 6 | 6 | 12 | 13 |
Interest cost on projected benefit obligations | 13 | 12 | 26 | 24 |
Expected return on plans assets | (7) | (8) | (14) | (16) |
Net amortization of: | ||||
Actuarial loss, net | 5 | 9 | 11 | 17 |
Prior service cost (credit) | (8) | (12) | (16) | (23) |
Net cost - continuing operations | $ 9 | $ 7 | 19 | 15 |
Post-employment Obligations and Other Long-term Liabilities: | ||||
Company contributions | $ 11 | $ 11 |
Taxes on Earnings (Details)
Taxes on Earnings (Details) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Taxes on Earnings | ||
Net benefit on remeasurement of deferred tax assets and liabilities | $ 78 | |
Excess tax benefits from share based compensation | 90 | $ 71 |
Cumulative net tax expense for the impact of Tax cuts and jobs act | 1,510 | |
Provisional transition tax | 16 | |
Minimum | ||
Taxes on Earnings | ||
Decrease reasonably possible in gross unrecognized tax benefits | 185 | |
Maximum | ||
Taxes on Earnings | ||
Decrease reasonably possible in gross unrecognized tax benefits | $ 430 | |
Discontinued operations | ||
Taxes on Earnings | ||
Tax expense (benefit) from resolution of various tax positions related to prior years | (24) | |
Decrease in gross unrecognized tax benefits | $ (31) |
Segment Information (Details)
Segment Information (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Segment Information | ||||
Net Sales to External Customers | $ 7,979 | $ 7,767 | $ 15,514 | $ 15,157 |
Operating Earnings | 1,206 | 882 | 1,945 | 1,490 |
Amortization of intangible assets | (483) | (562) | (969) | (1,146) |
Earnings from continuing operations before tax | 1,102 | 777 | $ 1,734 | 1,208 |
Annual share-based awards recognized in first quarter (as a percent) | 50.00% | |||
Established Pharmaceutical Products | ||||
Segment Information | ||||
Net Sales to External Customers | 1,108 | 1,129 | $ 2,100 | 2,173 |
Nutritional Products | ||||
Segment Information | ||||
Net Sales to External Customers | 1,875 | 1,858 | 3,667 | 3,614 |
Diagnostic Products | ||||
Segment Information | ||||
Net Sales to External Customers | 1,905 | 1,873 | 3,746 | 3,710 |
Cardiovascular and Neuromodulation Products | ||||
Segment Information | ||||
Net Sales to External Customers | 2,473 | 2,421 | 4,802 | 4,744 |
Other | ||||
Segment Information | ||||
Net Sales to External Customers | 618 | 486 | 1,199 | 916 |
Total Reportable Segments | ||||
Segment Information | ||||
Net Sales to External Customers | 7,361 | 7,281 | 14,315 | 14,241 |
Operating Earnings | 1,871 | 1,882 | 3,538 | 3,581 |
Total Reportable Segments | Established Pharmaceutical Products | ||||
Segment Information | ||||
Net Sales to External Customers | 1,108 | 1,129 | 2,100 | 2,173 |
Operating Earnings | 214 | 208 | 373 | 375 |
Total Reportable Segments | Nutritional Products | ||||
Segment Information | ||||
Net Sales to External Customers | 1,875 | 1,858 | 3,667 | 3,614 |
Operating Earnings | 447 | 424 | 827 | 789 |
Total Reportable Segments | Diagnostic Products | ||||
Segment Information | ||||
Net Sales to External Customers | 1,905 | 1,873 | 3,746 | 3,710 |
Operating Earnings | 466 | 489 | 900 | 932 |
Total Reportable Segments | Cardiovascular and Neuromodulation Products | ||||
Segment Information | ||||
Net Sales to External Customers | 2,473 | 2,421 | 4,802 | 4,744 |
Operating Earnings | 744 | 761 | 1,438 | 1,485 |
Corporate functions | ||||
Segment Information | ||||
Corporate functions and benefit plans costs | (99) | (140) | (201) | (292) |
Reconciling items | ||||
Segment Information | ||||
Non-reportable segments | 173 | 125 | 327 | 217 |
Net interest expense | (146) | (189) | (294) | (388) |
Share-based compensation (a) | (114) | (101) | (340) | (313) |
Amortization of intangible assets | (483) | (562) | (969) | (1,146) |
Other, net (b) | $ (100) | $ (238) | $ (327) | $ (451) |