Post-Employment Benefits

6 Months Ended

Jun. 30, 2013

Note 7 — Post-Employment Benefits

Retirement plans consist of defined benefit, defined contribution, and medical and dental plans. Net cost recognized in continuing operations for the three and six months ended June 30 for Abbott’s major defined benefit plans and post-employment medical and dental benefit plans is as follows:

	Defined Benefit Plans												Medical and Dental Plans
	Three Months						Six Months						Three Months						Six Months
	Ended June 30						Ended June 30						Ended June 30						Ended June 30
(dollars in millions)	2013			2012			2013			2012			2013			2012			2013			2012
Service cost — benefits earned during the period	$	76		$	59		$	152		$	118		$	11		$	8		$	23		$	16
Interest cost on projected benefit obligations	66			67			132			133			15			11			30			22
Expected return on plans’ assets	(94		)	(91		)	(187		)	(182		)	(9		)	(4		)	(18		)	(9		)
Net amortization	41			36			82			73			—			(1		)	—			(2		)
Net Cost	$	89		$	71		$	179		$	142		$	17		$	14		$	35		$	27

Abbott funds its domestic defined benefit plans according to IRS funding limitations. International pension plans are funded according to applicable regulations. In the first six months of 2013 and 2012, approximately $320 million was contributed to defined benefit plans and $40 million was contributed to the post-employment medical and dental benefit plans in each period.

The separation agreement with AbbVie obligates Abbott to transfer certain defined benefit and medical and dental plan liabilities and assets to AbbVie. The net obligation is included in the assets and liabilities transferred to AbbVie as part of the separation on January 1, 2013. Although the Abbott plans still hold some of the assets included in this net obligation, the AbbVie plans have the right to receive and Abbott has the obligation to complete the transfer of these assets. Any such assets held by an Abbott plan as of June 30, 2013 will be transferred to the applicable AbbVie plan in 2013. The following table summarizes these projected benefit obligations and assets at January 1, 2013:

(dollars in millions)	Defined Benefit Plans		Medical and Dental Plans
Projected benefit obligations	$	4,542	$	501
Plans’ assets	3,149		—
Net obligation transferred to AbbVie	$	1,393	$	501

In addition, Abbott transferred to AbbVie Accumulated other comprehensive income (loss), net of income taxes, of approximately $1.2 billion.

- Definition

The entire disclosure for postemployment benefits, which may include supplemental unemployment benefits, obligations recognized for all types of benefits provided to former or inactive employees, their beneficiaries, and covered dependents after employment but before retirement. Disclosure may also include discussion that an obligation for postemployment benefits is not accrued in accordance with regulation only because the amount cannot be reasonably estimated.

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