Post-Employment Benefits

9 Months Ended

Sep. 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 nine months ended September 30 for Abbott’s major defined benefit plans and post-employment medical and dental benefit plans is as follows:

	Defined Benefit Plans												Medical and Dental Plans
	Three Months						Nine Months						Three Months						Nine Months
	Ended Sept. 30						Ended Sept. 30						Ended Sept. 30						Ended Sept. 30
(dollars in millions)	2013			2012			2013			2012			2013			2012			2013			2012
Service cost — benefits earned during the period	$	70		$	57		$	222		$	175		$	10		$	8		$	33		$	24
Interest cost on projected benefit obligations	66			66			198			199			15			10			45			32
Expected return on plans’ assets	(109		)	(90		)	(296		)	(272		)	(9		)	(4		)	(27		)	(13		)
Net amortization	41			33			123			106			(1		)	(1		)	(1		)	(3		)
Net Cost	$	68		$	66		$	247		$	208		$	15		$	13		$	50		$	40

Abbott funds its domestic defined benefit plans according to IRS funding limitations. International pension plans are funded according to applicable regulations. In the first nine months of 2013 and 2012, approximately $680 million and $360 million, respectively, 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. The following table summarizes these projected benefit obligations and assets at January 1, 2013, based on the final actuarial valuations:

(dollars in millions)	Defined Benefit Plans		Medical and Dental Plans
Projected benefit obligations	$	4,534	$	472
Plans’ assets	3,111		—
Net obligation transferred to AbbVie	$	1,423	$	472

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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