10-Q

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 10-Q

(Mark One)

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

For the quarterly period ended March 31, 2015

OR

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

For the transition period from             to            

Commission File No. 1-2189

ABBOTT LABORATORIES

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

100 Abbott Park Road

Abbott Park, Illinois 60064-6400

Telephone:  (224) 667-6100

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

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§ 229.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).  Yes x  No o

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

Large Accelerated Filer x	Accelerated Filer o
Non-Accelerated Filer o	Smaller reporting company o
(Do not check if a smaller reporting company)

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

As of March 31, 2015, Abbott Laboratories had 1,488,757,318 common shares without par value outstanding.

Abbott Laboratories

Table of Contents

	Page
Part I - Financial Information
Item 1. Financial Statements and Supplementary Data
Condensed Consolidated Statement of Earnings	3
Condensed Consolidated Statement of Comprehensive Income	4
Condensed Consolidated Balance Sheet	5
Condensed Consolidated Statement of Cash Flows	6
Notes to Condensed Consolidated Financial Statements	7
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations	18
Item 4. Controls and Procedures	24
Part II - Other Information
Item 1. Legal Proceedings	25
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds	25
Item 6. Exhibits	25
Signature	26

2

Abbott Laboratories and Subsidiaries

Condensed Consolidated Statement of Earnings

(Unaudited)

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

	Three Months Ended March 31
	2015			2014
Net sales	$	4,897		$	4,755
Cost of products sold, excluding amortization of intangible assets	2,081			2,274
Amortization of intangible assets	156			127
Research and development	313			369
Selling, general and administrative	1,737			1,620
Total operating cost and expenses	4,287			4,390
Operating earnings	610			365
Interest expense	37			36
Interest (income)	(21		)	(16		)
Net foreign exchange (gain) loss	(54		)	1
Other (income) expense, net	(5		)	3
Earnings from continuing operations before taxes	653			341
Taxes on earnings from continuing operations	124			117
Earnings from continuing operations	529			224
Earnings from discontinued operations, net of tax	26			151
Gain on sale of discontinued operations, net of tax	1,737			—
Net earnings from discontinued operations, net of tax	1,763			151
Net Earnings	$	2,292		$	375
Basic Earnings Per Common Share —
Continuing operations	$	0.35		$	0.14
Discontinued operations	1.17			0.10
Net earnings	$	1.52		$	0.24
Diluted Earnings Per Common Share —
Continuing operations	$	0.35		$	0.14
Discontinued operations	1.16			0.10
Net earnings	$	1.51		$	0.24
Cash Dividends Declared Per Common Share	$	0.24		$	0.22
Average Number of Common Shares Outstanding Used for Basic Earnings Per Common Share	1,504,995			1,532,810
Dilutive Common Stock Options	10,542			14,881
Average Number of Common Shares Outstanding Plus Dilutive Common Stock Options	1,515,537			1,547,691
Outstanding Common Stock Options Having No Dilutive Effect	5,263			4,421

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

3

Abbott Laboratories and Subsidiaries

Condensed Consolidated Statement of Comprehensive Income

(Unaudited)

(dollars in millions)

	Three Months Ended March 31
	2015			2014
Net earnings	$	2,292		$	375
Foreign currency translation (loss) gain adjustments	(911		)	62
Net actuarial gains (losses) and amortization of net actuarial (losses) and prior service (cost) and credits, net of taxes of $15 in 2015 and $8 in 2014	31			16
Unrealized gains on marketable equity securities, net of taxes of $88 in 2015 and nil in 2014	173			—
Net adjustments for derivative instruments designated as cash flow hedges, net of taxes of $7 in 2015 and nil in 2014	26			—
Other comprehensive (loss) income	(681		)	78
Comprehensive Income	$	1,611		$	453

	March 31,			December 31,
	2015			2014
Supplemental Accumulated Other Comprehensive Income (Loss) Information, net of tax:
Cumulative foreign currency translation (loss) adjustments	$	(3,727	)	$	(2,924	)
Net actuarial (losses) and prior service (cost) and credits	(2,179		)	(2,229		)
Cumulative unrealized gains on marketable equity securities	174			1
Cumulative gains on derivative instruments designated as cash flow hedges	125			99

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

4

Abbott Laboratories and Subsidiaries

Condensed Consolidated Balance Sheet

(Unaudited)

(dollars in millions)

	March 31, 2015			December 31, 2014
Assets
Current Assets:
Cash and cash equivalents	$	3,226		$	4,063
Short-term investments	6,623			397
Trade receivables, less allowances of $317 in 2015 and $310 in 2014	3,481			3,586
Inventories:
Finished products	1,780			1,807
Work in process	287			278
Materials	556			558
Total inventories	2,623			2,643
Prepaid expenses, deferred income taxes, and other receivables	3,859			3,680
Current assets held for disposition	173			892
Total Current Assets	19,985			15,261
Investments	244			229
Property and equipment, at cost	12,251			12,632
Less: accumulated depreciation and amortization	6,552			6,697
Net property and equipment	5,699			5,935
Intangible assets, net of amortization	5,979			6,198
Goodwill	9,855			10,067
Deferred income taxes and other assets	1,330			1,651
Non-current assets held for disposition	3			1,934
	$	43,095		$	41,275
Liabilities and Shareholders’ Investment
Current Liabilities:
Short-term borrowings	$	2,921		$	4,382
Trade accounts payable	1,012			1,064
Salaries, wages and commissions	649			776
Other accrued liabilities	3,380			2,943
Dividends payable	358			362
Income taxes payable	534			270
Current portion of long-term debt	51			55
Current liabilities held for disposition	301			680
Total Current Liabilities	9,206			10,532
Long-term debt	5,931			3,408
Post-employment obligations, deferred income taxes and other long-term liabilities	5,970			5,588
Non-current liabilities held for disposition	—			108
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: 2015: 1,698,124,396; 2014: 1,694,929,949	12,462			12,383
Common shares held in treasury, at cost - Shares: 2015: 209,367,078; 2014: 186,894,515	(9,721		)	(8,678		)
Earnings employed in the business	24,740			22,874
Accumulated other comprehensive income (loss)	(5,607		)	(5,053		)
Total Abbott Shareholders’ Investment	21,874			21,526
Noncontrolling Interests in Subsidiaries	114			113
Total Shareholders’ Investment	21,988			21,639
	$	43,095		$	41,275

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

5

Abbott Laboratories and Subsidiaries

Condensed Consolidated Statement of Cash Flows

(Unaudited)

(dollars in millions)

	Three Months Ended March 31
	2015			2014
Cash Flow From (Used in) Operating Activities:
Net earnings	$	2,292		$	375
Adjustments to reconcile earnings to net cash from operating activities -
Depreciation	215			224
Amortization of intangibles	156			174
Share-based compensation	148			119
Gain on sale of discontinued operations	(2,821		)	—
Trade receivables	(90		)	82
Inventories	(128		)	(90		)
Other, net	230			(548		)
Net Cash From Operating Activities	2			336
Cash Flow From (Used in) Investing Activities:
Acquisitions of property and equipment	(235		)	(255		)
Proceeds from business disposition	230			—
Purchases of investment securities, net	(213		)	(367		)
Other	13			27
Net Cash (Used in) Investing Activities	(205		)	(595		)
Cash Flow From (Used in) Financing Activities:
Net (repayments of) proceeds from short-term debt and other	(1,471		)	1,213
Proceeds from the issuance of long-term debt	2,485			—
Repayments of long-term debt	(10		)	—
Purchases of common shares	(1,346		)	(2,192		)
Proceeds from stock options exercised, including income tax benefit	156			170
Dividends paid	(364		)	(343		)
Net Cash (Used in) Financing Activities	(550		)	(1,152		)
Effect of exchange rate changes on cash and cash equivalents	(84		)	(4		)
Net Decrease in Cash and Cash Equivalents	(837		)	(1,415		)
Cash and Cash Equivalents, Beginning of Year	4,063			3,475
Cash and Cash Equivalents, End of Period	$	3,226		$	2,060

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

6

Abbott Laboratories and Subsidiaries

Notes to Condensed Consolidated Financial Statements

March 31, 2015

(Unaudited)

Note 1 — Basis of Presentation

The accompanying unaudited, condensed consolidated financial statements have been prepared pursuant to rules and regulations of the Securities and Exchange Commission and, therefore, do not include all information and footnote disclosures normally included in audited financial statements.  However, in the opinion of management, all adjustments (which include only normal adjustments) necessary to present fairly the results of operations, financial position and cash flows have been made.  It is suggested that these statements be read in conjunction with the financial statements included in Abbott’s Annual Report on Form 10-K for the year ended December 31, 2014.  The consolidated financial statements include the accounts of the parent company and subsidiaries, after elimination of intercompany transactions.

Note 2 — Discontinued Operations

On February 27, 2015 Abbott completed the sale of its developed markets branded generics pharmaceuticals business to Mylan Inc. (Mylan) for 110 million shares (or approximately 22%) of a newly formed entity (Mylan N.V.) that combined Mylan’s existing business and Abbott’s developed markets branded generics pharmaceuticals business.  Mylan N.V. is publicly traded.  Historically, this business was included in Abbott’s Established Pharmaceutical Products segment.  Abbott retained its branded generics pharmaceuticals business in emerging markets.  At the date of closing, the 110 million Mylan N.V. shares that Abbott received were valued at $5.77 billion and Abbott recorded an after-tax gain on the sale of the business of approximately $1.6 billion.  The shareholder agreement with Mylan N.V. includes voting and other restrictions that prevent Abbott from exercising significant influence over the operating and financial policies of Mylan N.V.

At the close of this transaction, Abbott and Mylan entered into transition services agreements pursuant to which Abbott and Mylan are providing various back office support services to each other on an interim transitional basis.  Transition services may be provided for up to 2 years.  Charges by Abbott under these transition services agreements are recorded as a reduction of the costs to provide the respective service in the applicable expense category in the Condensed Consolidated Statement of Earnings.  This transition support does not constitute significant continuing involvement in Mylan’s operations. Abbott also entered into manufacturing supply agreements with Mylan related to certain products, with the supply term ranging from 3 to 10 years and requiring a 2 year notice prior to termination.  The cash flows associated with these transition service and manufacturing supply agreements are not expected to be significant and these cash flows are not direct cash flows of the disposed component under Accounting Standards Codification 205.

On February 10, 2015, Abbott completed the sale of its animal health business to Zoetis Inc.  Abbott received cash proceeds of $230 million and reported an after tax gain on the sale of approximately $131 million.

As a result of the disposition of the above businesses, the current and prior year operating results of these businesses up to the date of sale are reported as part of discontinued operations on the Earnings from Discontinued Operations, net of tax line in the Condensed Consolidated Statement of Earnings.  Discontinued operations include an allocation of interest expense assuming a uniform ratio of consolidated debt to equity for all of Abbott’s historical operations.

On January 1, 2013, Abbott completed the separation of AbbVie Inc. (AbbVie), which was formed to hold Abbott’s research-based proprietary pharmaceuticals business. For a small portion of AbbVie’s operations, the legal transfer of AbbVie’s assets (net of liabilities) did not occur with the separation of AbbVie on January 1, 2013 due to the time required to transfer marketing authorizations and other regulatory requirements in each of these countries.  Under the terms of the separation agreement with Abbott, AbbVie is subject to the risks and entitled to the benefits generated by these operations and assets.  The majority of these operations were transferred to AbbVie in 2013 and 2014.  These assets and liabilities have been presented as held for disposition in the Condensed Consolidated Balance Sheet. Abbott has recorded a prepaid asset of $164 million for its obligation to transfer these net liabilities held for disposition to AbbVie.

Abbott has retained all liabilities for all U.S. federal and foreign income taxes on income prior to the separation, as well as certain non-income taxes attributable to AbbVie’s business prior to the separation. AbbVie generally will be liable for all other taxes attributable to its business. Earnings from discontinued operations in the first quarter of 2015 and 2014 reflect the recognition of $13 million and $36 million, respectively, of net tax benefits primarily as a result of the resolution of various tax positions related to AbbVie’s operations for years prior to the separation.

7

The following table summarizes the components of discontinued operations:

	Three Months Ended March 31
(in millions)	2015			2014
Net Sales
Developed markets generics pharmaceuticals and animal health businesses	$	256		$	489
AbbVie	—			—
Total	$	256		$	489
Earnings Before Tax
Developed markets generics pharmaceuticals and animal health businesses	$	25		$	82
AbbVie	—			—
Total	$	25		$	82
Income Tax Expense (Benefit)
Developed markets generics pharmaceuticals and animal health businesses	$	12		$	(33	)
AbbVie	(13		)	(36		)
Total	$	(1	)	$	(69	)
Net Earnings
Developed markets generics pharmaceuticals and animal health businesses	$	13		$	115
AbbVie	13			36
Total	$	26		$	151

The sale of the developed markets branded generics pharmaceuticals and animal health businesses in the first quarter of 2015 resulted in the recognition of a pretax gain of $2.821 billion, tax expense of $1.084 billion and an after tax gain of $1.737 billion.

The assets of the operations held for disposition and the liabilities to be assumed in the disposition related to the businesses noted above, as well as the AbbVie assets and liabilities are classified as held for disposition in the Condensed Consolidated Balance Sheet as of March 31, 2015 and December 31, 2014.  The cash flows associated with the developed markets branded generics pharmaceuticals and animal health businesses are included in Abbott’s Condensed Consolidated Statement of Cash Flows up to the date of disposition.  The following is a summary of the assets and liabilities held for disposition:

(in millions)	March 31, 2015		December 31, 2014
Trade receivables, net	$	91	$	498
Total inventories	54		254
Prepaid expenses, deferred income taxes, and other receivables	28		140
Current assets held for disposition	173		892
Net property and equipment	2		125
Intangible assets, net of amortization	—		804
Goodwill	—		950
Deferred income taxes and other assets	1		55
Non-current assets held for disposition	3		1,934
Total assets held for disposition	$	176	$	2,826
Trade accounts payable	$	286	$	423
Salaries, wages, commissions and other accrued liabilities	15		257
Current liabilities held for disposition	301		680
Post-employment obligations, deferred income taxes and other long-term liabilities	—		108
Total liabilities held for disposition	$	301	$	788

8

Note 3 — Supplemental Financial Information

Shares of unvested restricted stock that contain non-forfeitable rights to dividends are treated as participating securities and are included in the computation of earnings per share under the two-class method.  Under the two-class method, net earnings are allocated between common shares and participating securities. Earnings from Continuing Operations allocated to common shares for the three months ended March 31, 2015 and 2014 were $526 million and $223 million, respectively.  Net earnings allocated to common shares for the three months ended March 31, 2015 and 2014 were $2,281 million and $373 million, respectively.

Other, net in Net cash from operating activities in the Condensed Consolidated Statement of Cash Flows for the first three months of 2015 and 2014 includes the effects of contributions to defined benefit plans of $529 million and $312 million, respectively, and to the post-employment medical and dental benefit plans of $24 million in 2015 and $40 million in 2014. The first quarter of 2015 includes the non-cash impact of approximately $1.1 billion of tax expense associated with the gain on the sale of businesses and the first quarter of 2014 includes approximately $110 million of tax benefits from the resolution of various tax positions pertaining to prior years.

The components of short-term and long-term investments as of March 31, 2015 and December 31, 2014 are as follows:

Short-term Investments	March 31,		December 31,
(in millions)	2015		2014
Equity securities	$	6,034	$	—
Other, primarily bank time deposits and U.S. treasury bills	589		397
Total	$	6,623	$	397

Long-term Investments
(in millions)
Equity securities	$	227	$	212
Other	17		17
Total	$	244	$	229

The short-term investments in equity securities reflect the 110 million of ordinary shares of Mylan N.V. received in the sale of the developed markets branded generics pharmaceuticals business.

In March 2015, Abbott issued $2.5 billion of long-term debt consisting of $750 million of 2.00% Senior Notes due March 15, 2020; $750 million of 2.55% Senior Notes due March 15, 2022; and $1.0 billion of 2.95% Senior Notes due March 15, 2025.  Abbott also entered into interest rate swap contracts totaling $2.5 billion.  These contracts have the effect of changing Abbott’s obligation from a fixed interest rate to a variable interest rate obligation.

Note 4 — Other Comprehensive Income

The components of the changes in other comprehensive income from continuing operations, net of income taxes, are as follows:

	Three Months Ended March 31
	Cumulative Foreign Currency Translation Adjustments						Net Actuarial Losses and Prior Service Costs and Credits						Cumulative Unrealized Gains on Marketable Equity Securities					Cumulative Gains on Derivative Instruments Designated as Cash Flow Hedges
(in millions)	2015			2014			2015			2014			2015		2014			2015			2014
Balance at December 31, 2014 and 2013	$	(2,924	)	$	(718	)	$	(2,229	)	$	(1,312	)	$	1	$	13		$	99		$	5
Impact of business dispositions	108			—			19			—			—		—			—			—
Other comprehensive (loss) income before reclassifications	(911		)	62			—			—			173		1			43			(1		)
Amounts reclassified from accumulated other comprehensive income	—			—			31			16			—		(1		)	(17		)	1
Net current period comprehensive (loss) income	(911		)	62			31			16			173		—			26			—
Balance at March 31	$	(3,727	)	$	(656	)	$	(2,179	)	$	(1,296	)	$	174	$	13		$	125		$	5

9

Reclassified amounts for foreign currency translation are recorded in the Condensed Consolidated Statement of Earnings as Net foreign exchange loss (gain); gains 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 is included as a component of net periodic benefit plan costs; see Note 11 for additional details.

Note 5 — Business Acquisitions

In September 2014, Abbott completed the acquisition of the controlling interest in CFR Pharmaceuticals S.A. (CFR) for approximately $2.9 billion in cash ($2.8 billion net of CFR cash on hand at closing). Including the assumption of approximately $570 million of debt, the total cost of the acquisition was $3.4 billion.  The acquisition of CFR more than doubles Abbott’s branded generics pharmaceutical presence in Latin America and further expands its presence in emerging markets.  CFR’s financial results are included in Abbott’s financial statements beginning on September 26, 2014, the date that Abbott acquired control of this business. Abbott owns 99.9% of the outstanding ordinary shares of CFR.  The fair value of the non-controlling interest at the acquisition date was approximately $3 million.  The acquisition was funded with cash and cash equivalents and short-term investments.  The preliminary allocation of the fair value of the acquisition is shown in the table below.  The allocation of the fair value of the acquisition will be finalized when the valuation is completed.

(in billions)
Acquired intangible assets, non-deductible	$	1.80
Goodwill, non-deductible	1.60
Acquired net tangible assets	0.06
Deferred income taxes recorded at acquisition	(0.54		)
Total preliminary allocation of fair value	$	2.92

Acquired intangible assets consist primarily of product rights for currently marketed products and are amortized over 12 to 16 years (average of 15 years).  The goodwill is primarily attributable to intangible assets that do not qualify for separate recognition.  The goodwill is identifiable to the Established Pharmaceutical Products segment.  The acquired tangible assets consist primarily of cash and cash equivalents of approximately $94 million, trade accounts receivable of approximately $179 million, inventory of approximately $169 million, other current assets of approximately $51 million, property and equipment of approximately $209 million, and other long-term assets of approximately $138 million.  Assumed liabilities consist of borrowings of approximately $570 million, trade accounts payable and other current liabilities of approximately $195 million and other noncurrent liabilities of approximately $15 million.

Annualized net sales for CFR Pharmaceuticals are expected to total approximately $800 million. Had the acquisition of CFR Pharmaceuticals taken place on January 1, 2013, the consolidated net sales and earnings of Abbott would not have been significantly different from the reported amounts.

In December 2014, Abbott acquired control of Veropharm, a leading Russian pharmaceutical company for approximately $315 million excluding assumed debt. Through this acquisition, Abbott establishes a manufacturing footprint in Russia and obtains a portfolio of medicines that is well aligned with Abbott’s current pharmaceutical therapeutic areas of focus.  Abbott acquired control of Veropharm through its purchase of Limited Liability Company Garden Hills, the holding company that owns approximately 98 percent of Veropharm.  Including the assumption of approximately $90 million of debt and a minority interest with a fair value of $5 million, the total value of the acquired business was approximately $410 million.  The preliminary allocation of the fair value of the acquisition resulted in definite-lived non-deductible intangible assets of approximately $100 million, non-deductible goodwill of approximately $110 million, and net deferred tax liabilities of approximately $35 million.  Non-deductible goodwill is identifiable with the Established Pharmaceutical Products segment.  Additionally, Abbott acquired property, plant, and equipment of approximately $170 million, accounts receivable of approximately $45 million, inventory of approximately $25 million, and net other liabilities of approximately $5 million.  Acquired intangible assets consist of developed technology and are being amortized over 16 years.

In December 2014, Abbott completed the acquisition of Topera, Inc. for approximately $250 million in cash, plus additional payments up to $300 million to be made upon completion of certain regulatory and sales milestones.  The acquisition of Topera provides Abbott a foundational entry in the electrophysiology market.  The final allocation of the fair value of the acquisition resulted in non-deductible acquired in-process research and development of approximately $20 million, which is accounted for as an indefinite-lived intangible asset until regulatory approval or discontinuation, non-deductible definite-lived intangibles assets of approximately $325 million, non-deductible goodwill of approximately $175 million, net deferred tax liabilities of approximately $105 million, and contingent consideration of approximately $165 million.  The fair value of the contingent consideration was determined based on an independent appraisal.  Acquired intangible assets consist of developed technology and trademarks, and are being amortized over 16 years.

10

The preliminary allocations of fair value of the acquisitions of CFR Pharmaceuticals and Veropharm will be finalized when valuations are completed. Had the aggregate of the above acquisitions taken place on January 1, 2013, consolidated net sales and earnings would not have been significantly different from reported amounts.

Note 6 — Goodwill and Intangible Assets

The total amount of goodwill reported was $9.855 billion at March 31, 2015 and $10.067 billion at December 31, 2014, which excluded goodwill classified as held for disposition.  As part of the disposal of the developed markets branded generics pharmaceuticals business in the first quarter of 2015, $894 million of goodwill was included as part of the net assets sold. In the first quarter of 2015, foreign currency translation adjustments decreased goodwill by approximately $267 million, while purchase price allocation adjustments associated with recent acquisitions increased goodwill by approximately $55 million.  The amount of goodwill related to reportable segments at March 31, 2015 was $3.3 billion for the Established Pharmaceutical Products segment, $286 million for the Nutritional Products segment, $444 million for the Diagnostic Products segment, and $2.9 billion for the Vascular Products segment.  There was no reduction of goodwill relating to impairments.

The gross amount of amortizable intangible assets, primarily product rights and technology was $10.9 billion as of March 31, 2015 and December 31, 2014, and accumulated amortization was $5.0 billion as of March 31, 2015 and $4.9 billion as of December 31, 2014. The December 31, 2014 amounts exclude the intangibles that were classified as held for disposition.  $738 million of intangibles were included in the net assets transferred as part of the disposal of the developed markets branded generics pharmaceuticals business in the first quarter of 2015. Indefinite-lived intangible assets, which relate to in-process research and development acquired in a business combination, was approximately $134 million at March 31, 2015 and December 31, 2014. Abbott’s estimated annual amortization expense for intangible assets is approximately $680 million in 2015, $660 million in 2016, $650 million in 2017, $570 million in 2018 and $530 million in 2019. Amortizable intangible assets are amortized over 2 to 20 years (weighted average 12 years).

Note 7 — Restructuring Plans

In 2014, Abbott management approved plans to streamline operations in order to reduce costs and improve efficiencies in various Abbott businesses including nutritional and established pharmaceuticals businesses. In the first quarter of 2015, additional charges of approximately $13 million were recorded primarily for accelerated depreciation. The following summarizes the activity for the first three months of 2015 related to these restructuring actions and the status of the related accrual as of March 31, 2015:

(in millions)
Accrued balance at December 31, 2014	$	118
Payments and other adjustments	(15		)
Accrued balance at March 31, 2015	$	103

From 2013 to 2015, Abbott management approved various plans to reduce costs and improve efficiencies across various functional areas. In the first quarter of 2015, charges of approximately $8 million were recognized, of which approximately $1 million is recorded in Cost of products sold and approximately $7 million as Selling, general and administrative expense. In 2013, Abbott management also approved plans to streamline certain manufacturing operations in order to reduce costs and improve efficiencies in Abbott’s established pharmaceuticals business. In 2012, Abbott management approved plans to streamline various commercial operations in order to reduce costs and improve efficiencies in Abbott’s core diagnostics, established pharmaceuticals and nutritionals businesses. The following summarizes the activity for the first three months of 2015 related to these restructuring actions and the status of the related accrual as of March 31, 2015:

(in millions)
Accrued balance at December 31, 2014	$	135
Restructuring charges recorded in 2015	8
Payments and other adjustments	(34		)
Accrued balance at March 31, 2015	$	109

In 2013 and prior years, Abbott management approved plans to realign its vascular manufacturing operations and core diagnostics business in order to reduce costs. The following summarizes the activity for the first three months of 2015 related to these restructuring actions and the status of the related accrual as of March 31, 2015:

(in millions)
Accrued balance at December 31, 2014	$	39
Payments and other adjustments	(6		)
Accrued balance at March 31, 2015	$	33

11

Note 8 — Incentive Stock Programs

In the first three months of 2015, Abbott granted 5,057,287 stock options, 634,362 restricted stock awards and 5,398,049 restricted stock units under its incentive stock programs.  At March 31, 2015, approximately 87 million shares were reserved for future grants.  Information regarding the number of options outstanding and exercisable at March 31, 2015 is as follows:

	Outstanding		Exercisable
Number of shares	38,316,478		28,926,890
Weighted average remaining life (years)	4.9		3.5
Weighted average exercise price	$	30.66	$	26.76
Aggregate intrinsic value (in millions)	$	605	$	567

The total unrecognized share-based compensation cost at March 31, 2015 amounted to approximately $288 million which is expected to be recognized over the next three years.

Note 9 — Financial Instruments, Derivatives and Fair Value Measures

Certain Abbott foreign subsidiaries enter into foreign currency forward exchange contracts to manage exposures to changes in foreign exchange rates for anticipated intercompany purchases by those subsidiaries whose functional currencies are not the U.S. dollar.  These contracts, with notional amounts totaling $1.5 billion at March 31, 2015 and December 31, 2014 are designated as cash flow hedges of the variability of the cash flows due to changes in foreign exchange rates and are recorded at fair value.  Accumulated gains and losses as of March 31, 2015 will be included in Cost of products sold at the time the products are sold, generally through the next twelve to eighteen months.  The amount of hedge ineffectiveness was not significant in 2015 and 2014.

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 and Japanese yen, 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, European currencies and Japanese yen.  At March 31, 2015 and December 31, 2014, Abbott held $13.8 billion and $14.1 billion, respectively, of such foreign currency forward exchange contracts.

Abbott has designated foreign denominated short-term debt as a hedge of the net investment in a foreign subsidiary of approximately $442 million and approximately $445 million as of March 31, 2015 and December 31, 2014, respectively.  Accordingly, changes in the reported value of this debt due to changes in exchange rates are recorded in Accumulated other comprehensive income (loss), net of tax.

Abbott is a party to interest rate hedge contracts totaling approximately $4.0 billion at March 31, 2015 and $1.5 billion at December 31, 2014 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.  No hedge ineffectiveness was recorded in income in 2015 or 2014 for these hedges.

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The following table summarizes the amounts and location of certain derivative financial instruments as of March 31, 2015 and December 31, 2014:

	Fair Value - Assets					Fair Value - Liabilities
(in millions)	March 31, 2015		Dec. 31, 2014		Balance Sheet Caption	March 31, 2015		Dec. 31, 2014		Balance Sheet Caption
Interest rate swaps designated as fair value hedges	$	150	$	101	Deferred income taxes and other assets	$	—	$	—	n/a
Foreign currency forward exchange contracts:
Hedging instruments	120		107		Prepaid expenses, deferred income taxes, and other receivables	10		—		Other accrued liabilities
Others not designated as hedges	324		150		Prepaid expenses, deferred income taxes, and other receivables	107		130		Other accrued liabilities
Debt designated as a hedge of net investment in a foreign subsidiary	—		—		n/a	442		445		Short-term borrowings
	$	594	$	358		$	559	$	575

The following table summarizes the activity for foreign currency forward exchange contracts designated as cash flow hedges, debt designated as a hedge of net investment in a foreign subsidiary and the amounts and location of income (expense) and gain (loss) reclassified into income in the first three months of 2015 and 2014 and for certain other derivative financial instruments.  The amount of hedge ineffectiveness was not significant in 2015 and 2014 for these hedges.

	Gain (loss) Recognized in Other Comprehensive Income (loss)					Income (expense) and Gain (loss) Reclassified into Income
(in millions)	2015		2014			2015			2014			Income Statement Caption
Foreign currency forward exchange contracts designated as cash flow hedges	$	43	$	2		$	17		$	3		Cost of products sold
Debt designated as a hedge of net investment in a foreign subsidiary	3		(11		)	—			—			n/a
Interest rate swaps designated as fair value hedges	n/a		n/a			49			11			Interest expense
Foreign currency forward exchange contracts not designated as a hedge	n/a		n/a			(16		)	(13		)	Net foreign exchange (gain) loss

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 March 31, 2015 and December 31, 2014 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.

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	March 31, 2015						December 31, 2014
(in millions)	Carrying Value			Fair Value			Carrying Value			Fair Value
Investment Securities:
Equity securities	$	6,261		$	6,261		$	212		$	212
Other	17			17			17			17
Total Long-term Debt	(5,982		)	(6,749		)	(3,463		)	(4,113		)
Foreign Currency Forward Exchange Contracts:
Receivable position	444			444			263			263
(Payable) position	(117		)	(117		)	(135		)	(135		)
Interest Rate Hedge Contracts:
Receivable position	150			150			101			101

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
(in millions)	Outstanding Balances		Quoted Prices in Active Markets		Significant Other Observable Inputs		Significant Unobservable Inputs
March 31, 2015:
Equity securities	$	6,043	$	9	$	6,034	$	—
Interest rate swap derivative financial instruments	150		—		150		—
Foreign currency forward exchange contracts	444		—		444		—
Total Assets	$	6,637	$	9	$	6,628	$	—
Fair value of hedged long-term debt	$	4,173	$	—	$	4,173	$	—
Foreign currency forward exchange contracts	117		—		117		—
Contingent consideration related to business combinations	250		—		—		250
Total Liabilities	$	4,540	$	—	$	4,290	$	250
December 31, 2014:
Equity securities	$	9	$	9	$	—	$	—
Interest rate swap derivative financial instruments	101		—		101		—
Foreign currency forward exchange contracts	263		—		263		—
Total Assets	$	373	$	9	$	364	$	—
Fair value of hedged long-term debt	$	1,637	$	—	$	1,637	$	—
Foreign currency forward exchange contracts	135		—		135		—
Contingent consideration related to business combinations	243		—		—		243
Total Liabilities	$	2,015	$	—	$	1,772	$	243

Equity securities are principally comprised of Mylan N.V. ordinary shares.  The fair value of the Mylan equity securities was determined based on the value of the publicly-traded ordinary shares adjusted for the restrictions related to the resale of these shares. 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.

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Note 10 — Litigation and Environmental Matters

Abbott has been identified as a potentially responsible party for investigation and cleanup costs at a number of locations in the United States and Puerto Rico under federal and state remediation laws and is investigating potential contamination at a number of company-owned locations. Abbott has recorded an estimated cleanup cost for each site for which management believes Abbott has a probable loss exposure. No individual site cleanup exposure is expected to exceed $4 million, and the aggregate cleanup exposure is not expected to exceed $15 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 $70 million to $85 million. The recorded accrual balance at March 31, 2015 for these proceedings and exposures was approximately $80 million. This accrual represents management’s best estimate of probable loss, as defined by FASB ASC No. 450, “Contingencies.” Within the next year, legal proceedings may occur that may result in a change in the estimated loss accrued by Abbott. While it is not feasible to predict the outcome of all such proceedings and exposures with certainty, management believes that their ultimate disposition should not have a material adverse effect on Abbott’s financial position, cash flows, or results of operations.

Note 11 — 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 months ended March 31 for Abbott’s major defined benefit plans and post-employment medical and dental benefit plans is as follows:

	Defined Benefit Plans						Medical and Dental Plans
(in millions)	March 31, 2015			March 31, 2014			March 31, 2015			March 31, 2014
Service cost - benefits earned during the period	$	82		$	66		$	9		$	9
Interest cost on projected benefit obligations	79			77			15			16
Expected return on plan assets	(129		)	(113		)	(10		)	(10		)
Net amortization of:
Actuarial loss, net	47			25			9			5
Prior service cost (credit)	—			1			(12		)	(9		)
Total cost	79			56			11			11
Less: Discontinued operations	1			4			—			—
Net cost — continuing operations	$	78		$	52		$	11		$	11

Abbott funds its domestic defined benefit plans according to IRS funding limitations.  International pension plans are funded according to similar regulations.  In the first quarters of 2015 and 2014, $529 million and $312 million, respectively, were contributed to defined benefit plans and $24 million and $40 million, respectively, were contributed to the post-employment medical and dental benefit plans.

Note 12 — Taxes on Earnings

Taxes on earnings from continuing operations reflect the estimated annual effective rates and include charges for interest and penalties. In the first quarter of 2015 and 2014, taxes on earnings from continuing operations were not affected by any adjustments as the result of the resolution of various tax positions pertaining to prior years. Tax expense related to discontinued operations includes $665 million of tax expense on certain current-year funds earned outside the U. S. that were not designated as permanently reinvested overseas. Earnings from discontinued operations, net of tax, in the first quarter of 2015 also reflects the recognition of $13 million of net tax benefits primarily as a result of the resolution of various tax positions related to AbbVie’s operations for years prior to the separation. The conclusion of these tax matters decreased the gross amount of unrecognized tax benefits by approximately $16 million. Earnings from discontinued operations, net of tax, in the first quarter of 2014 reflects the recognition of $107 million of net tax benefits primarily as a result of the resolution of various tax positions related to the developed markets branded generics pharmaceuticals business, as well as AbbVie’s operations, for years prior to the separation. The conclusion of these tax matters decreased the gross amount of unrecognized tax benefits by approximately $102 million.

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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 by $525 million to $635 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 2011 are settled except for two issues.

Note 13 — Segment Information

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

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

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

Diagnostic Products — Worldwide sales of diagnostic systems and tests for blood banks, hospitals, commercial laboratories and alternate-care testing sites.  For segment reporting purposes, the Core Laboratories Diagnostics, Molecular Diagnostics, Point of Care and Ibis diagnostic divisions are aggregated and reported as the Diagnostic Products segment.

Vascular Products — Worldwide sales of coronary, endovascular, structural heart, vessel closure and other medical device products. For segment reporting purposes, the Vascular and Electrophysiology Products divisions are aggregated and reported as the Vascular Products segment.

Non-reportable segments include the Diabetes Care and Medical Optics segments.

On February 27, 2015, Abbott completed the sale of its developed markets branded generics pharmaceuticals business to Mylan N.V.  This business was previously included in the Established Pharmaceutical Products segment for the first quarter of 2014; therefore, the 2014 segment information below has been adjusted to reflect the classification of the developed markets branded generics pharmaceuticals business as part of discontinued operations in the Condensed Consolidated Statement of Earnings.

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.

	Three Months Ended March 31
	Net Sales to External Customers				Operating Earnings
(in millions)	2015		2014		2015			2014
Established Pharmaceutical Products	$	897	$	681	$	167		$	121
Nutritional Products	1,669		1,631		350			283
Diagnostic Products	1,093		1,117		276			222
Vascular Products	698		738		284			221
Total Reportable Segments	4,357		4,167		1,077			847
Other	540		588
Net Sales	$	4,897	$	4,755
Corporate functions and benefit plans costs					(117		)	(58		)
Non-reportable segments					55			66
Net interest expense					(16		)	(20		)
Share-based compensation (a)					(148		)	(116		)
Amortization of intangible assets					(156		)	(127		)
Other, net (b)					(42		)	(251		)
Earnings from continuing operations before taxes					$	653		$	341

(a)Approximately 40 to 45 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)The decrease from 2014 to 2015 primarily reflects lower charges for cost reduction initiatives.

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Note 14 — Subsequent Event

In April 2015, Abbott sold 40.3 million of the 110 million ordinary shares of Mylan N.V. received in the sale of the developed markets branded generics pharmaceuticals business to Mylan.  In the second quarter of 2015, Abbott will record a pretax gain of $206 million on $2.29 billion in net proceeds from the sale of these shares.

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

Financial Review - Results of Operations

In February 2015 Abbott completed the sale of its developed markets branded generics pharmaceuticals business to Mylan Inc.  Abbott retained its branded generics pharmaceuticals business in emerging markets.  In February 2015 Abbott also completed the sale of its animal health business to Zoetis Inc. The results of these businesses prior to the date of sale have been excluded from continuing operations and are reported as part of discontinued operations in the Condensed Consolidated Statement of Earnings.

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

	Net Sales to External Customers
(in millions)	March 31, 2015		March 31, 2014		Total Change		Impact of Foreign Exchange		Total Change Excl. Foreign Exchange
Established Pharmaceutical Products	$	897	$	681	31.8	%	(11.2	)%	43.0	%
Nutritional Products	1,669		1,631		2.3		(4.0	)	6.3
Diagnostic Products	1,093		1,117		(2.1	)	(8.1	)	6.0
Vascular Products	698		738		(5.4	)	(7.5	)	2.1
Total Reportable Segments	4,357		4,167		4.6		(6.9	)	11.5
Other	540		588		(8.2	)	(7.7	)	(0.5	)
Net Sales from Continuing Operations	$	4,897	$	4,755	3.0		(7.0	)	10.0
Total U.S.	$	1,502	$	1,474	1.9		—		1.9
Total International	$	3,395	$	3,281	3.5		(10.1	)	13.6

The net sales growth of 3% in 2015 was negatively impacted by changes in foreign currency exchange rates.  The relatively stronger U.S. dollar decreased total international sales by 10.1 percent and total sales by 7.0 percent. Excluding the unfavorable impact of foreign exchange and including the impact of the 2014 acquisitions of CFR Pharmaceuticals and Veropharm, total net sales increased 10.0 percent in 2015, driven by higher revenues in the Established Pharmaceutical, Nutritional and Diagnostic Products segments.  Double-digit growth in emerging market sales was a significant contributor to the 13.6 percent increase in total international sales excluding the impact of foreign exchange for the first quarter of 2015.

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

(in millions)	March 31, 2015		March 31, 2014		Total Change		Impact of Foreign Exchange		Total Change Excl. Foreign Exchange
Established Pharmaceutical Products —
Key Emerging Markets	$	653	$	496	31.8	%	(13.0	)%	44.8	%
Other Emerging Markets	244		185		31.6		(6.4	)	38.0
Nutritionals —
U.S. Pediatric Nutritionals	385		368		4.5		—		4.5
International Pediatric Nutritionals	577		545		6.0		(5.7	)	11.7
U.S. Adult Nutritionals	300		321		(6.5	)	—		(6.5	)
International Adult Nutritionals	407		397		2.4		(8.4	)	10.8
Diagnostics —
Immunochemistry	821		856		(4.1	)	(9.0	)	4.9
Vascular Products (1) —
Drug Eluting Stents (DES) and Bioresorbable Vascular Scaffold (BVS) products	332		368		(10.0	)	(7.2	)	(2.8	)
Other Coronary products	133		145		(8.3	)	(7.8	)	(0.5	)
Endovascular	125		121		3.0		(6.8	)	9.8

(1) Other Coronary Products include primarily guidewires and balloon catheters.  Endovascular includes vessel closure, carotid stents and other peripheral products.

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Key Emerging Markets for the Established Pharmaceutical Products business include India, Russia, China, Brazil and Colombia, along with several other markets that represent the most attractive long-term growth opportunities for Abbott’s branded generics product portfolio.  Excluding the unfavorable effect of foreign exchange, sales in the Key Emerging Markets increased 44.8 percent compared to the first quarter of 2014.  Excluding the impact of the 2014 acquisitions of CFR Pharmaceuticals and Veropharm and the effect of foreign exchange, sales in the Key Emerging Markets for Established Pharmaceuticals increased in the low double digits.

Excluding the effect of foreign exchange, the 11.7 percent increase in International Pediatric Nutritional sales was primarily driven by double-digit growth in China and Latin America as a result of recently launched infant formula products and an increase in market share.  Excluding the effect of foreign exchange, the 10.8 percent increase in International Adult Nutritional sales reflects double-digit growth in Latin America and continued expansion of the adult nutrition category internationally.  The 6.5 percent decrease in U.S. Adult Nutritional sales reflects weakness in the retail and institutional categories due to the negative effects of increased competition and market dynamics.

In the Vascular Products segment, sales of DES products declined due primarily to continued pricing pressures.  The increase in the Endovascular business was driven by higher Supera and vessel closure sales.

The gross profit margin percentage was 54.3 percent for the first quarter 2015 compared to 49.5 percent for the first quarter 2014.  The increase primarily reflects the impact of gross margin initiatives across Abbott’s businesses and, in part, the comparison to an unusually low ratio experienced in the first quarter of 2014 due to the impact of unfavorable foreign exchange in the diagnostics, established pharmaceuticals and nutritional businesses.

Research and development expenses decreased by $56 million, or 15.0 percent, in the first quarter 2015 due primarily to the impact of higher restructuring costs recorded in the first quarter of 2014 than the first quarter of 2015. For the three months ended March 31, 2015, research and development expenditures totaled $58 million for the Vascular Products segment, $98 million for the Diagnostic Products segment, $34 million for the Established Pharmaceutical Products segment and $50 million for the Nutritional Products segment.

Selling, general and administrative expenses for the first quarter of 2015 increased 7.2 percent due primarily to the impact of the acquisition of CFR Pharmaceuticals in the third quarter of 2014 and Veropharm in the fourth quarter of 2014.

Business Acquisitions

In September 2014, Abbott completed the acquisition of the controlling interest in CFR Pharmaceuticals S.A. (CFR) for approximately $2.9 billion in cash ($2.8 billion net of CFR cash on hand at closing). Including the assumption of approximately $570 million of debt, the total cost of the acquisition was $3.4 billion. The acquisition of CFR more than doubles Abbott’s branded generics pharmaceutical presence in Latin America and further expands its presence in emerging markets. CFR’s financial results are included in Abbott’s financial statements beginning on September 26, 2014, the date that Abbott acquired control of this business. Abbott owns 99.9% of the outstanding ordinary shares of CFR. The fair value of the non-controlling interest at the acquisition date was approximately $3 million. The acquisition was funded with cash and cash equivalents and short-term investments. The preliminary allocation of the fair value of the acquisition is shown in the table below.  The allocation of the fair value of the acquisition will be finalized when the valuation is completed.

(in billions)
Acquired intangible assets, non-deductible	$	1.80
Goodwill, non-deductible	1.60
Acquired net tangible assets	0.06
Deferred income taxes recorded at acquisition	(0.54		)
Total preliminary allocation of fair value	$	2.92

Acquired intangible assets consist primarily of product rights for currently marketed products and are amortized over 12 to 16 years (average of 15 years).  The goodwill is primarily attributable to intangible assets that do not qualify for separate recognition.  The goodwill is identifiable to the Established Pharmaceutical Products segment.  The acquired tangible assets consist primarily of cash and cash equivalents of approximately $94 million, trade accounts receivable of approximately $179 million, inventory of approximately $169 million, other current assets of approximately $51 million, property and equipment of approximately $209 million, and other long-

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term assets of approximately $138 million.  Assumed liabilities consist of borrowings of approximately $570 million, trade accounts payable and other current liabilities of approximately $195 million and other noncurrent liabilities of approximately $15 million.

Annualized net sales for CFR Pharmaceuticals are expected to total approximately $800 million. Had the acquisition of CFR Pharmaceuticals taken place on January 1, 2013, the consolidated net sales and earnings of Abbott would not have been significantly different from the reported amounts.

In December 2014, Abbott acquired control of Veropharm, a leading Russian pharmaceutical company for approximately $315 million excluding assumed debt. Through this acquisition, Abbott establishes a manufacturing footprint in Russia and obtains a portfolio of medicines that is well aligned with Abbott’s current pharmaceutical therapeutic areas of focus.  Abbott acquired control of Veropharm through its purchase of Limited Liability Company Garden Hills, the holding company that owns approximately 98 percent of Veropharm.  Including the assumption of approximately $90 million of debt and a minority interest with a fair value of $5 million, the total value of the acquired business was approximately $410 million.  The preliminary allocation of the fair value of the acquisition resulted in definite-lived non-deductible intangible assets of approximately $100 million, non-deductible goodwill of approximately $110 million, and net deferred tax liabilities of approximately $35 million.  Non-deductible goodwill is identifiable with the Established Pharmaceutical Products segment.  Additionally, Abbott acquired property, plant, and equipment of approximately $170 million, accounts receivable of approximately $45 million, inventory of approximately $25 million, and net other liabilities of approximately $5 million.  Acquired intangible assets consist of developed technology and are being amortized over 16 years.

In December 2014, Abbott completed the acquisition of Topera, Inc. for approximately $250 million in cash, plus additional payments up to $300 million to be made upon completion of certain regulatory and sales milestones.  The acquisition of Topera provides Abbott a foundational entry in the electrophysiology market.  The final allocation of the fair value of the acquisition resulted in non-deductible acquired in-process research and development of approximately $20 million, which is accounted for as an indefinite-lived intangible asset until regulatory approval or discontinuation, non-deductible definite-lived intangibles assets of approximately $325 million, non-deductible goodwill of approximately $175 million, net deferred tax liabilities of approximately $105 million, and contingent consideration of approximately $165 million.  The fair value of the contingent consideration was determined based on an independent appraisal.  Acquired intangible assets consist of developed technology and trademarks, and are being amortized over 16 years.

The preliminary allocations of fair value of CFR Pharmaceuticals and Veropharm will be finalized when valuations are completed. Had the aggregate of the above acquisitions taken place on January 1, 2013, consolidated net sales and earnings would not have been significantly different from reported amounts.

Restructuring Plans

The results for the first three months of 2015 reflect charges recognized for actions associated with the company’s plans to streamline various operations in order to reduce costs and improve efficiencies. Abbott recorded employee related severance and other charges of approximately $8 million in 2015 related to these initiatives. Approximately $1 million is recognized in Cost of products sold and approximately $7 million is recognized in Selling, general and administrative expense.  See Note 7 to the financial statements, “Restructuring Plans,” for additional information regarding these charges.

Interest Expense (Income), net

Interest expense (income), net decreased $4 million in the first quarter 2015 compared to 2014 due to higher interest income in the first quarter of 2015, due to a higher rate of return on short-term investments.

Taxes on Earnings from Continuing Operations

Taxes on earnings from continuing operations reflect the estimated annual effective rates and include charges for interest and penalties. In the first quarter of 2015 and 2014, taxes on earnings from continuing operations were not affected by any adjustments as the result of the resolution of various tax positions pertaining to prior years.  The change in the effective rate from 2014 to 2015 primarily reflects the impact of the repatriation of 2014 earnings generated outside the U.S. on the 2014 tax rate. Tax expense related to discontinued operations includes $665 million of tax expense on certain current-year funds earned outside the U.S. that were not designated as permanently reinvested overseas.  Earnings from discontinued operations, net of tax, in the first quarter of 2015 also reflects the recognition of $13 million of net tax benefits primarily as a result of the resolution of various tax positions related to AbbVie’s operations for years prior to the separation. The conclusion of these tax matters decreased the gross amount of unrecognized tax benefits by approximately $16 million. Earnings from discontinued operations, net of tax, in the first quarter of 2014 reflects the

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recognition of $107 million of net tax benefits primarily as a result of the resolution of various tax positions related to the developed markets branded generics pharmaceuticals business, as well as AbbVie’s operations, for years prior to the separation. The conclusion of these tax matters decreased the gross amount of unrecognized tax benefits by approximately $102 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 by $525 million to $635 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 2011 are settled except for two issues.

Separation of AbbVie Inc.

On January 1, 2013, Abbott completed the separation of AbbVie Inc. (AbbVie), which was formed to hold Abbott’s research-based proprietary pharmaceuticals business. For a small portion of AbbVie’s operations, the legal transfer of AbbVie’s assets (net of liabilities) did not occur with the separation of AbbVie on January 1, 2013 due to the time required to transfer marketing authorizations and other regulatory requirements in each of these countries.  Under the terms of the separation agreement with Abbott, AbbVie is subject to the risks and entitled to the benefits generated by these operations and assets.  The majority of these operations were transferred to AbbVie in 2013 and 2014. These assets and liabilities have been presented as held for disposition in the Condensed Consolidated Balance Sheet. Abbott has recorded a prepaid asset of $164 million for its obligation to transfer these net liabilities held for disposition to AbbVie.

Abbott has retained all liabilities for all U.S. federal and foreign income taxes on income prior to the separation, as well as certain non-income taxes attributable to AbbVie’s business. AbbVie generally will be liable for all other taxes attributable to its business. Earnings from discontinued operations in the first quarter of 2015 and 2014 reflect the recognition of $13 million and $36 million, respectively, of net tax benefits primarily as a result of the resolution of various tax positions related to AbbVie’s operations for years prior to the separation.

Discontinued Operations

As a result of the disposition of Abbott’s developed markets branded generics pharmaceuticals and animal health businesses, the current and prior year operating, results of these businesses up to the date of sale are reported as part of discontinued operations on the Earnings from discontinued operations, net of tax line in the Condensed Consolidated Statement of Earnings. Discontinued operations include an allocation of interest expense assuming a uniform ratio of consolidated debt to equity for all of Abbott’s historical operations.

The operating results of Abbott’s developed markets branded generics pharmaceuticals, animal health and AbbVie businesses, which are being reported as discontinued operations are as follows:

	Three Months Ended March 31
(in millions)	2015			2014
Net Sales
Developed markets generics pharmaceuticals and animal health businesses	$	256		$	489
AbbVie	—			—
Total	$	256		$	489
Earnings Before Tax
Developed markets generics pharmaceuticals and animal health businesses	$	25		$	82
AbbVie	—			—
Total	$	25		$	82
Income Tax Expense (Benefit)
Developed markets generics pharmaceuticals and animal health businesses	$	12		$	(33	)
AbbVie	(13		)	(36		)
Total	$	(1	)	$	(69	)
Net Earnings
Developed markets generics pharmaceuticals and animal health businesses	$	13		$	115
AbbVie	13			36
Total	$	26		$	151

21

The sale of the developed markets branded generics pharmaceuticals and animal health businesses in the first quarter of 2015 resulted in the recognition of a pretax gain of $2.821 billion, tax expense of $1.084 billion and an after tax gain of $1.737 billion.

The assets of the operations held for disposition and the liabilities to be assumed in the disposition related to the businesses noted above, as well as the AbbVie assets and liabilities are classified as held for disposition in the Condensed Consolidated Balance Sheet as of March 31, 2015 and December 31, 2014.  Prior period balance sheets are not adjusted when a business is designated as being held for sale. The cash flows associated with the developed markets branded generics pharmaceuticals and animal health businesses are included in Abbott’s Condensed Consolidated Statement of Cash Flows up to the date of disposition.  The following is a summary of the assets and liabilities held for disposition:

(in millions)	March 31, 2015		December 31, 2014
Trade receivables, net	$	91	$	498
Total inventories	54		254
Prepaid expenses, deferred income taxes, and other receivables	28		140
Current assets held for disposition	173		892
Net property and equipment	2		125
Intangible assets, net of amortization	—		804
Goodwill	—		950
Deferred income taxes and other assets	1		55
Non-current assets held for disposition	3		1,934
Total assets held for disposition	$	176	$	2,826
Trade accounts payable	$	286	$	423
Salaries, wages, commissions and other accrued liabilities	15		257
Current liabilities held for disposition	301		680
Post-employment obligations, deferred income taxes and other long-term liabilities	—		108
Total liabilities held for disposition	$	301	$	788

Liquidity and Capital Resources March 31, 2015 Compared with December 31, 2014

The reduction of cash and cash equivalents from $4.1 billion at December 31, 2014 to $3.2 billion at March 31, 2015 reflects share repurchases and dividends paid in the quarter.

Net cash from operating activities for the first three months of 2015 totaled $2 million. Other, net in Net cash from operating activities for the first three months of 2015 of $230 million reflects the non-cash impact of approximately $1.1 billion of tax expense associated with the gain on the sale of businesses. Other, net cash from operating activities also includes the contributions to defined benefit pension plans of $529 million in 2015, as well as approximately $55 million related to cost reduction and business disposal activities. Other, net in Net cash from operating activities for the first three months of 2014 of $(548) million reflects contributions to defined benefit pension plans of $312 million in 2014, as well as the non-cash impact in the first quarter of approximately $110 million of tax benefits from the resolution of various tax positions pertaining to prior years.  Abbott expects to fund cash dividends, capital expenditures and its other investments in its businesses with cash flow from operating activities, cash on hand, short-term investments and borrowings.

Working capital was $10.8 billion at March 31, 2015 and $4.7 billion at December 31, 2014.  The $6.1 billion increase in working capital in 2015 primarily reflects the $6.0 billion of Mylan N.V. ordinary shares held by Abbott at March 31, 2015.  Abbott received the shares in the sale of Abbott’s developed markets branded generics pharmaceuticals business to Mylan in the first quarter of 2015.

A majority of Abbott’s trade receivables in Italy, Spain, Portugal, and Greece are with governmental health systems.  Governmental receivables in these four countries accounted for approximately 1% of Abbott’s total assets and 8% of total net trade receivables as of March 31, 2015 as compared to approximately 1% of total assets and 9% of total net receivables as of December 31, 2014.  With the exception of Greece, Abbott historically has collected almost all of the outstanding receivables in these countries. Abbott closely monitors economic conditions and budgetary and other fiscal developments in these countries.  Abbott regularly communicates with its customers regarding the status of receivable balances, including their payment plans and obtains positive confirmation of the validity of the receivables.  Abbott also monitors the potential for and periodically has utilized factoring arrangements to mitigate risk although such arrangements were not material in the first three months of 2015.

22

Since January 2010, Venezuela has been designated as a highly inflationary economy under U.S. GAAP.  In 2014 and in the first quarter of 2015, the government of Venezuela operated multiple mechanisms to exchange bolivars into U.S. dollars.  In the first quarter of 2015, Abbott continued to use the official rate of 6.3 Venezuelan bolivars to the U.S. dollar to report the results, financial position, and cash flows related to its operations in Venezuela since Abbott continued to qualify for this exchange rate to pay for the import of various products into Venezuela.  Abbott cannot predict whether there will be a devaluation of the Venezuelan bolivar or whether it will continue to be able to exchange bolivars at the 6.3 rate.  As of March 31, 2015, Abbott had net monetary assets that are subject to revaluation in Venezuela of approximately $345 million.  In the first quarter of 2015, revenue from operations in Venezuela represented approximately 3% of Abbott’s total net sales.

At March 31, 2015 Abbott’s long-term debt rating was A+ by Standard & Poor’s Corporation and A2 by Moody’s Investors Service.  Abbott has readily available financial resources, including unused lines of credit of $5.0 billion that support commercial paper borrowing arrangements which expire in 2019.

Under a registration statement filed with the Securities and Exchange Commission in March 2015, Abbott issued $2.5 billion of long-term debt in the first quarter of 2015 that matures in 2020, 2022 and 2025 with fixed interest rates of 2.0 percent, 2.55 percent, and 2.95 percent, respectively.  Proceeds from this debt were used to pay down short-term borrowings.  Abbott also entered into interest rate swap contracts totaling $2.5 billion.  These contracts have the effect of changing Abbott’s obligation from a fixed interest rate to a variable interest rate obligation.

In September 2014, the board of directors authorized the repurchase of up to $3.0 billion of Abbott’s common shares from time to time, which was in addition to the $512 million unused portion of a previous program announced in June 2013. In the first three months of 2015, Abbott repurchased 11.3 million shares at a cost of $512 million under the unused portion of the 2013 authorization and 15.6 million shares at a cost of $738 million under the program authorized in 2014 for a total of 26.9 million shares at a cost of $1.25 billion. In the first three months of 2014, 54.6 million shares were purchased at a cost of $2.1 billion under the June 2013 authorization.

In the first quarter of 2015, Abbott declared a dividend of $0.24 per share on its common shares, which represents a 9% increase over the $0.22 per share dividend declared in the first quarter of 2014.

In April 2015, Abbott sold 40.3 million of the 110 million Mylan N.V. ordinary shares that it received in the sale of the developed markets branded generics pharmaceuticals business.  The sale of these shares generated cash proceeds of $2.29 billion and a pretax gain of $206 million to be recognized in the second quarter of 2015.

Recently Issued Accounting Standards

In May 2014, the Financial Accounting Standards Board issued Accounting Standards Update No. 2014-09, Revenue from Contracts with Customers, which provides a single comprehensive model for accounting for revenue from contracts with customers and will supersede most existing revenue recognition guidance. Early adoption is not permitted. The standard becomes effective for Abbott in the first quarter of 2018 if the Financial Accounting Standards Board defers the effective date for one year as it has proposed. Abbott is currently evaluating the effect, if any, that the standard will have on its consolidated financial statements and related disclosures.

Legislative Issues

Abbott’s primary markets are highly competitive and subject to substantial government regulations throughout the world.  Abbott expects debate to continue over the availability, method of delivery, and payment for health care products and services.  It is not possible to predict the extent to which Abbott or the health care industry in general might be adversely affected by these factors in the future.  A more complete discussion of these factors is contained in Item 1, Business, and Item 1A, Risk Factors, in the 2014 Annual Report on Form 10-K.

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

Under the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, Abbott cautions investors that any forward-looking statements or projections made by Abbott, including those made in this document, are subject to risks and uncertainties that may cause actual results to differ materially from those projected. Economic, competitive, governmental, technological and other factors that may affect Abbott’s operations are discussed in Item 1A, Risk Factors, in the 2014 Annual Report on Form 10-K.

23

PART I.FINANCIAL INFORMATION

Item 4.Controls and Procedures

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

(b)Changes in internal control over financial reporting.  During the quarter ended March 31, 2015, there were no changes in Abbott’s internal control over financial reporting (as defined in Rule 13a-15(f) under the Exchange Act) that have materially affected, or are reasonably likely to materially affect, Abbott’s internal control over financial reporting.

24

PART II.OTHER INFORMATION

Item 1.Legal Proceedings

Abbott is involved in various claims, legal proceedings and investigations, including those described in our Annual Report on Form 10-K for the year ended December 31, 2014.

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

(c)  Issuer Purchases of Equity Securities

Period	(a) Total Number of Shares (or Units) Purchased		(b) Average Price Paid per Share (or Unit)		(c) Total Number of Shares (or Units) Purchased as Part of Publicly Announced Plans or Programs	(d) Maximum Number (or Approximate Dollar Value) of Shares (or Units) that May Yet Be Purchased Under the Plans or Programs
January 1, 2015 — January 31, 2015	64,507	(1)	$	44.730	—	$	3,511,537,561	(2)
February 1, 2015 — February 28, 2015	17,166,191	(1)	$	46.062	17,100,000	$	2,723,837,671	(2)
March 1, 2015 — March 31, 2015	9,840,102	(1)	$	46.997	9,836,795	$	2,261,537,480	(2)
Total	27,070,800	(1)	$	46.399	26,936,795	$	2,261,537,480	(2)

(1)These shares include the shares deemed surrendered to Abbott to pay the exercise price in connection with the exercise of employee stock options — 64,507 in January, 66,191 in February, and 3,307 in March.

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

(2)On June 14, 2013, Abbott announced that its board of directors approved the purchase of up to $3 billion of its common shares, from time to time (the “2013 Plan”).  On September 11, 2014, Abbott announced that its board of directors approved the purchase of up to $3 billion of its common shares, from time to time (the “2014 Plan”).  The 2014 Plan is in addition to the unused portion of the 2013 Plan of $512 million. The amount available for repurchase under the remaining portion of the 2013 plan has been fully utilized as part of the share repurchases in the first quarter of 2015.

Item 6.Exhibits

Incorporated by reference to the Exhibit Index included herewith.

25

SIGNATURE

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

ABBOTT LABORATORIES
By:	/s/ Thomas C. Freyman
	Thomas C. Freyman
	Executive Vice President,
	Finance and Chief Financial Officer
	Date: May 6, 2015

26

EXHIBIT INDEX

Exhibit No.	Exhibit
4.1	Indenture, dated as of March 10, 2015, between Abbott Laboratories and U.S. Bank National Association (including form of Security), filed as Exhibit 4.1 to the Abbott Laboratories Current Report on Form 8-K dated March 5, 2015.
12	Statement re: Computation of ratio of earnings to fixed charges.
31.1	Certification of Chief Executive Officer Required by Rule 13a-14(a) (17 CFR 240.13a-14(a)).
31.2	Certification of Chief Financial Officer Required by Rule 13a-14(a) (17 CFR 240.13a-14(a)).
Exhibits 32.1 and 32.2 are furnished herewith and should not be deemed to be “filed” under the Securities Exchange Act of 1934.
32.1	Certification of Chief Executive Officer Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
32.2	Certification of Chief Financial Officer Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
101	The following financial statements and notes from the Abbott Laboratories Quarterly Report on Form 10-Q for the quarter ended March 31, 2015, formatted in XBRL: (i) Condensed Consolidated Statement of Earnings; (ii) Condensed Consolidated Statement of Comprehensive Earnings; (iii) Condensed Consolidated Balance Sheet; (iv) Condensed Consolidated Statement of Cash Flows; and (v) Notes to the Condensed Consolidated Financial Statements.

27

EX-12

Exhibit 12

Abbott Laboratories and Subsidiaries

Computation of Ratio of Earnings to Fixed Charges

(Unaudited)

(dollars in millions)

	Three Months Ended
	March 31, 2015
Earnings from Continuing Operations	$	529
Add (deduct):
Taxes on earnings	124
Capitalized interest cost, net of amortization	8
Noncontrolling interests	4
Earnings from Continuing Operations, as adjusted	665
Fixed Charges:
Interest on long-term and short-term debt	37
Capitalized interest cost	3
Rental expense representative of an interest factor	20
Total Fixed Charges	60
Total adjusted earnings available for payment of fixed charges	$	725
Ratio of earnings to fixed charges	12.0

NOTE:For the purpose of calculating this ratio, (i) earnings from continuing operations have been calculated by adjusting earnings for taxes on earnings; interest expense; capitalized interest cost, net of amortization; noncontrolling interests; and the portion of rentals representative of the interest factor, (ii) Abbott considers one-third of rental expense to be the amount representing return on capital, and (iii) fixed charges comprise total interest expense, including capitalized interest and such portion of rentals.

1

EX-31.1

Exhibit 31.1

Certification of Chief Executive Officer

Required by Rule 13a-14(a) (17 CFR 240.13a-14(a))

I, Miles D. White, certify that:

1.I have reviewed this quarterly report on Form 10-Q of Abbott Laboratories;

2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of Abbott as of, and for, the periods presented in this report;

4.Abbott’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for Abbott and have:

a)Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to Abbott, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b)Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c)Evaluated the effectiveness of Abbott’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d)Disclosed in this report any change in Abbott’s internal control over financial reporting that occurred during Abbott’s most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, Abbott’s internal control over financial reporting; and

5.Abbott’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to Abbott’s auditors and the audit committee of Abbott’s board of directors:

a)All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect Abbott’s ability to record, process, summarize and report financial information; and

b)Any fraud, whether or not material, that involves management or other employees who have a significant role in Abbott’s internal control over financial reporting.

Date: May 6, 2015	/s/ Miles D. White
	Miles D. White, Chairman of the Board and Chief Executive Officer

EX-31.2

Exhibit 31.2

Certification of Chief Financial Officer

Required by Rule 13a-14(a) (17 CFR 240.13a-14(a))

I, Thomas C. Freyman, certify that:

1.I have reviewed this quarterly report on Form 10-Q of Abbott Laboratories;

2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of Abbott as of, and for, the periods presented in this report;

4.Abbott’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for Abbott and have:

a)Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to Abbott, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b)Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c)Evaluated the effectiveness of Abbott’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d)Disclosed in this report any change in Abbott’s internal control over financial reporting that occurred during Abbott’s most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, Abbott’s internal control over financial reporting; and

5.Abbott’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to Abbott’s auditors and the audit committee of Abbott’s board of directors:

a)All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect Abbott’s ability to record, process, summarize and report financial information; and

b)Any fraud, whether or not material, that involves management or other employees who have a significant role in Abbott’s internal control over financial reporting.

Date: May 6, 2015	/s/ Thomas C. Freyman
	Thomas C. Freyman, Executive Vice President, Finance and Chief Financial Officer

EX-32.1

Exhibit 32.1

Certification Pursuant To

18 U.S.C. Section 1350

As Adopted Pursuant To

Section 906 of the Sarbanes-Oxley Act of 2002

In connection with the Quarterly Report of Abbott Laboratories (the “Company”) on Form 10-Q for the period ended March 31, 2015 as filed with the Securities and Exchange Commission (the “Report”), I, Miles D. White, Chairman of the Board and Chief Executive Officer of the Company, certify, pursuant to 18 U.S.C. § 1350, as adopted pursuant to § 906 of the Sarbanes-Oxley Act of 2002, that:

(1)The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2)The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

/s/ Miles D. White

Miles D. White

Chairman of the Board and

Chief Executive Officer

May 6, 2015

A signed original of this written statement required by Section 906 has been provided to Abbott Laboratories and will be retained by Abbott Laboratories and furnished to the Securities and Exchange Commission or its staff upon request.

EX-32.2

Exhibit 32.2

Certification Pursuant To

18 U.S.C. Section 1350

As Adopted Pursuant To

Section 906 of the Sarbanes-Oxley Act of 2002

In connection with the Quarterly Report of Abbott Laboratories (the “Company”) on Form 10-Q for the period ended March 31, 2015 as filed with the Securities and Exchange Commission (the “Report”), I, Thomas C. Freyman, Executive Vice President, Finance and Chief Financial Officer of the Company, certify, pursuant to 18 U.S.C. § 1350, as adopted pursuant to § 906 of the Sarbanes-Oxley Act of 2002, that:

(1)The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2)The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

/s/ Thomas C. Freyman

Thomas C. Freyman

Executive Vice President, Finance

and Chief Financial Officer

May 6, 2015

A signed original of this written statement required by Section 906 has been provided to Abbott Laboratories and will be retained by Abbott Laboratories and furnished to the Securities and Exchange Commission or its staff upon request.

XML

Restructuring Plans (Details 2) (USD $) In Millions, unless otherwise specified	3 Months Ended
	Mar. 31, 2015
Restructuring Plan 2014
Restructuring reserve activity
Restructuring reserve, beginning balance of the period	$ 118
Restructuring charges	13
Payments and other adjustments	(15)
Restructuring reserve, ending balance of the period	103
Restructuring Plan 2015
Restructuring reserve activity
Restructuring reserve, beginning balance of the period	135
Restructuring charges	8
Payments and other adjustments	(34)
Restructuring reserve, ending balance of the period	109
Restructuring Plan 2013 and Prior Years
Restructuring reserve activity
Restructuring reserve, beginning balance of the period	39
Payments and other adjustments	(6)
Restructuring reserve, ending balance of the period	$ 33

XML

Segment Information (Details) (USD $) In Millions, unless otherwise specified	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014
Segment Reporting Information
Net Sales to External Customers	$ 4,897	$ 4,755
Operating Earnings	653	341
Other
Segment Reporting Information
Net Sales to External Customers	540	588
Total Reportable Segments
Segment Reporting Information
Net Sales to External Customers	4,357	4,167
Operating Earnings	1,077	847
Total Reportable Segments | Established Pharmaceutical Products
Segment Reporting Information
Net Sales to External Customers	897	681
Operating Earnings	167	121
Total Reportable Segments | Nutritional Products
Segment Reporting Information
Net Sales to External Customers	1,669	1,631
Operating Earnings	350	283
Total Reportable Segments | Diagnostic Products
Segment Reporting Information
Net Sales to External Customers	1,093	1,117
Operating Earnings	276	222
Total Reportable Segments | Vascular Products
Segment Reporting Information
Net Sales to External Customers	698	738
Operating Earnings	$ 284	$ 221

XML

Post-Employment Benefits (Details) (USD $) In Millions, unless otherwise specified	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014	Dec. 31, 2014
Net amortization of:
Accumulated other comprehensive income (loss), net of income taxes	$ (5,607)		$ (5,053)
Defined Benefit Plans
Defined benefit plan net periodic benefit cost
Service cost - benefits earned during the period	82	66
Interest cost on projected benefit obligations	79	77
Expected return on plan assets	(129)	(113)
Actuarial loss, net	47	25
Prior service cost (credit)		1
Total Cost	79	56
Net amortization of:
Company contributions	529	312
Defined Benefit Plans | Discontinued operations
Defined benefit plan net periodic benefit cost
Total Cost	1	4
Defined Benefit Plans | Continuing operations
Defined benefit plan net periodic benefit cost
Total Cost	78	52
Medical and Dental Plans
Defined benefit plan net periodic benefit cost
Service cost - benefits earned during the period	9	9
Interest cost on projected benefit obligations	15	16
Expected return on plan assets	(10)	(10)
Actuarial loss, net	9	5
Prior service cost (credit)	(12)	(9)
Total Cost	11	11
Net amortization of:
Company contributions	24	40
Medical and Dental Plans | Continuing operations
Defined benefit plan net periodic benefit cost
Total Cost	$ 11	$ 11

XML

Supplemental Financial Information (Details) (USD $) Share data in Millions, unless otherwise specified	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014	Dec. 31, 2014
Supplemental Financial Information
Earnings from continuing operations allocated to common shares	$ 526,000,000	$ 223,000,000
Net earnings allocated to common shares	2,281,000,000	373,000,000
Noncash impact of tax benefits from resolution of prior year tax positions included in other, net use of cash in Net cash from operating activities		110,000,000
Component of long-term investment
Short-term Investments, Total	6,623,000,000		397,000,000
Investments	244,000,000		229,000,000
Debt and Lines of Credit
Long-term debt issued	2,500,000,000
Post-employment Obligations and Other Long-term Liabilities:
Tax Expenses	1,100,000,000
Interest rate swaps
Debt and Lines of Credit
Notional amount of contracts entered during the period	2,500,000,000
2.00% Senior Notes Due March 15, 2020
Debt and Lines of Credit
Long-term debt issued	750,000,000
Interest rate percentage	2.00%
2.55% Senior Notes Due March 15, 2022
Debt and Lines of Credit
Long-term debt issued	750,000,000
Interest rate percentage	2.55%
2.95% Senior Notes Due March 15, 2025
Debt and Lines of Credit
Long-term debt issued	1,000,000,000
Interest rate percentage	2.95%
Defined Benefit Plans
Post-employment Obligations and Other Long-term Liabilities:
Company contributions	529,000,000	312,000,000
Medical and Dental Plans
Post-employment Obligations and Other Long-term Liabilities:
Company contributions	24,000,000	40,000,000
Equity securities
Component of long-term investment
Short-term Investments, Total	6,034,000,000
Investments	227,000,000		212,000,000
Equity securities | Mylan NV
Component of long-term investment
Number of shares owned	110
Other,
Component of long-term investment
Investments	17,000,000		17,000,000
Other, Primarily Bank Time Deposits and Us Treasury Bills Member
Component of long-term investment
Short-term Investments, Total	$ 589,000,000		$ 397,000,000

XML

Business Acquisitions (Tables)

3 Months Ended

Mar. 31, 2015

Business Acquisitions

Schedule of the allocation of the fair value of the acquisition

(in billions)
Acquired intangible assets, non-deductible	$	1.80
Goodwill, non-deductible	1.60
Acquired net tangible assets	0.06
Deferred income taxes recorded at acquisition	(0.54		)
Total preliminary allocation of fair value	$	2.92

XML

Subsequent Event (Details) (Subsequent Event, Mylan NV, USD $) Share data in Millions, unless otherwise specified	1 Months Ended	3 Months Ended
	Apr. 30, 2015	Jun. 30, 2015	Mar. 31, 2015
Subsequent Event | Mylan NV
Subsequent event
Number of shares in investment sold	40.3
Net proceeds from sale of shares		$ 2,290,000,000
Number of shares owned			110
Gain (Loss) on Sale of Investments		$ 206,000,000

XML

Financial Instruments, Derivatives and Fair Value Measures (Details 2) (USD $) In Millions, unless otherwise specified	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014
Net investment hedges | Designated as hedging instrument
Gain (loss) on derivatives
Gain (loss) Recognized in Other Comprehensive Income (loss)	$ 3	$ (11)
Interest rate swaps | Fair value hedges | Designated as hedging instrument | Interest expense
Gain (loss) on derivatives
Gain (loss) Reclassified into Income	49	11
Foreign currency forward exchange contracts | Not designated as hedging instrument | Net foreign exchange (gain) loss
Gain (loss) on derivatives
Gain (loss) Reclassified into Income	(16)	(13)
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)	43	2
Gain (loss) Reclassified into Income	$ 17	$ 3

XML

Goodwill and Intangible Assets (Details 2) (USD $)	3 Months Ended
	Mar. 31, 2015	Dec. 31, 2014
Goodwill and Intangible Assets
Gross amount of amortizable intangible assets	10,900,000,000	$ 10,900,000,000
Accumulated amortization of intangible assets	5,000,000,000	4,900,000,000
Indefinite-lived intangible assets related to in-process research and development acquired in a business combination	134,000,000	134,000,000
Estimated annual amortization expense, intangible assets, 2015	680,000,000
Estimated annual amortization expense, intangible assets, 2016	660,000,000
Estimated annual amortization expense, intangible assets, 2017	650,000,000
Estimated annual amortization expense, intangible assets, 2018	570,000,000
Estimated annual amortization expense, intangible assets, 2019	530,000,000
Minimum
Goodwill and Intangible Assets
Average amortization period, intangible assets	2 years
Maximum
Goodwill and Intangible Assets
Average amortization period, intangible assets	20 years
Average
Goodwill and Intangible Assets
Average amortization period, intangible assets	12 years

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Taxes on Earnings (Details) (USD $) In Millions, unless otherwise specified	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014
Taxes on Earnings
Tax Expenses	$ 1,100
Decrease in gross unrecognized tax benefits	16
Decrease in gross unrecognized tax benefits, upper bound	635
Decrease in gross unrecognized tax benefits, lower bound	525
Discontinued operations
Taxes on Earnings
Tax Expenses	665
Discontinued operations | AbbVie
Taxes on Earnings
Favorable resolution of various tax positions and other unusual provision items	13	107
Decrease in gross unrecognized tax benefits		$ 102

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Discontinued Operations

3 Months Ended

Mar. 31, 2015

Discontinued Operations.

Discontinued Operations

Note 2 — Discontinued Operations

On February 27, 2015 Abbott completed the sale of its developed markets branded generics pharmaceuticals business to Mylan Inc. (Mylan) for 110 million shares (or approximately 22%) of a newly formed entity (Mylan N.V.) that combined Mylan’s existing business and Abbott’s developed markets branded generics pharmaceuticals business.  Mylan N.V. is publicly traded.  Historically, this business was included in Abbott’s Established Pharmaceutical Products segment.  Abbott retained its branded generics pharmaceuticals business in emerging markets.  At the date of closing, the 110 million Mylan N.V. shares that Abbott received were valued at $5.77 billion and Abbott recorded an after-tax gain on the sale of the business of approximately $1.6 billion.  The shareholder agreement with Mylan N.V. includes voting and other restrictions that prevent Abbott from exercising significant influence over the operating and financial policies of Mylan N.V.

At the close of this transaction, Abbott and Mylan entered into transition services agreements pursuant to which Abbott and Mylan are providing various back office support services to each other on an interim transitional basis.  Transition services may be provided for up to 2 years.  Charges by Abbott under these transition services agreements are recorded as a reduction of the costs to provide the respective service in the applicable expense category in the Condensed Consolidated Statement of Earnings.  This transition support does not constitute significant continuing involvement in Mylan’s operations. Abbott also entered into manufacturing supply agreements with Mylan related to certain products, with the supply term ranging from 3 to 10 years and requiring a 2 year notice prior to termination.  The cash flows associated with these transition service and manufacturing supply agreements are not expected to be significant and these cash flows are not direct cash flows of the disposed component under Accounting Standards Codification 205.

On February 10, 2015, Abbott completed the sale of its animal health business to Zoetis Inc.  Abbott received cash proceeds of $230 million and reported an after tax gain on the sale of approximately $131 million.

As a result of the disposition of the above businesses, the current and prior year operating results of these businesses up to the date of sale are reported as part of discontinued operations on the Earnings from Discontinued Operations, net of tax line in the Condensed Consolidated Statement of Earnings.  Discontinued operations include an allocation of interest expense assuming a uniform ratio of consolidated debt to equity for all of Abbott’s historical operations.

On January 1, 2013, Abbott completed the separation of AbbVie Inc. (AbbVie), which was formed to hold Abbott’s research-based proprietary pharmaceuticals business. For a small portion of AbbVie’s operations, the legal transfer of AbbVie’s assets (net of liabilities) did not occur with the separation of AbbVie on January 1, 2013 due to the time required to transfer marketing authorizations and other regulatory requirements in each of these countries.  Under the terms of the separation agreement with Abbott, AbbVie is subject to the risks and entitled to the benefits generated by these operations and assets.  The majority of these operations were transferred to AbbVie in 2013 and 2014.  These assets and liabilities have been presented as held for disposition in the Condensed Consolidated Balance Sheet. Abbott has recorded a prepaid asset of $164 million for its obligation to transfer these net liabilities held for disposition to AbbVie.

Abbott has retained all liabilities for all U.S. federal and foreign income taxes on income prior to the separation, as well as certain non-income taxes attributable to AbbVie’s business prior to the separation. AbbVie generally will be liable for all other taxes attributable to its business. Earnings from discontinued operations in the first quarter of 2015 and 2014 reflect the recognition of $13 million and $36 million, respectively, of net tax benefits primarily as a result of the resolution of various tax positions related to AbbVie’s operations for years prior to the separation.

The following table summarizes the components of discontinued operations:

	Three Months Ended March 31
(in millions)	2015			2014
Net Sales
Developed markets generics pharmaceuticals and animal health businesses	$	256		$	489
AbbVie	—			—
Total	$	256		$	489
Earnings Before Tax
Developed markets generics pharmaceuticals and animal health businesses	$	25		$	82
AbbVie	—			—
Total	$	25		$	82
Income Tax Expense (Benefit)
Developed markets generics pharmaceuticals and animal health businesses	$	12		$	(33	)
AbbVie	(13		)	(36		)
Total	$	(1	)	$	(69	)
Net Earnings
Developed markets generics pharmaceuticals and animal health businesses	$	13		$	115
AbbVie	13			36
Total	$	26		$	151

The sale of the developed markets branded generics pharmaceuticals and animal health businesses in the first quarter of 2015 resulted in the recognition of a pretax gain of $2.821 billion, tax expense of $1.084 billion and an after tax gain of $1.737 billion.

The assets of the operations held for disposition and the liabilities to be assumed in the disposition related to the businesses noted above, as well as the AbbVie assets and liabilities are classified as held for disposition in the Condensed Consolidated Balance Sheet as of March 31, 2015 and December 31, 2014.  The cash flows associated with the developed markets branded generics pharmaceuticals and animal health businesses are included in Abbott’s Condensed Consolidated Statement of Cash Flows up to the date of disposition.  The following is a summary of the assets and liabilities held for disposition:

(in millions)	March 31, 2015		December 31, 2014
Trade receivables, net	$	91	$	498
Total inventories	54		254
Prepaid expenses, deferred income taxes, and other receivables	28		140
Current assets held for disposition	173		892
Net property and equipment	2		125
Intangible assets, net of amortization	—		804
Goodwill	—		950
Deferred income taxes and other assets	1		55
Non-current assets held for disposition	3		1,934
Total assets held for disposition	$	176	$	2,826
Trade accounts payable	$	286	$	423
Salaries, wages, commissions and other accrued liabilities	15		257
Current liabilities held for disposition	301		680
Post-employment obligations, deferred income taxes and other long-term liabilities	—		108
Total liabilities held for disposition	$	301	$	788

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Financial Instruments, Derivatives and Fair Value Measures (Details 3) (USD $) In Millions, unless otherwise specified	Mar. 31, 2015	Dec. 31, 2014
Fair value, asset and liability measures
Investments Securities	$ 244	$ 229
Foreign currency forward exchange contracts, receivable position	594	358
Foreign currency forward exchange contracts, (payable) position	(559)	(575)
Equity securities
Fair value, asset and liability measures
Investments Securities	227	212
Carrying value
Fair value, asset and liability measures
Total long-term debt	(5,982)	(3,463)
Foreign currency forward exchange contracts, receivable position	444	263
Foreign currency forward exchange contracts, (payable) position	(117)	(135)
Interest rate hedge contracts, receivable position	150	101
Carrying value | Equity securities
Fair value, asset and liability measures
Investments Securities	6,261	212
Carrying value | Other.
Fair value, asset and liability measures
Investments Securities	17	17
Fair value
Fair value, asset and liability measures
Total long-term debt	(6,749)	(4,113)
Foreign currency forward exchange contracts, receivable position	444	263
Foreign currency forward exchange contracts, (payable) position	(117)	(135)
Interest rate hedge contracts, receivable position	150	101
Fair value | Equity securities
Fair value, asset and liability measures
Investments Securities	6,261	212
Fair value | Other.
Fair value, asset and liability measures
Investments Securities	$ 17	$ 17

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Post-Employment Benefits (Tables)

3 Months Ended

Mar. 31, 2015

Post-Employment Benefits

Net cost for the entity's major defined benefit plans and post-employment medical and dental benefit plans

	Defined Benefit Plans						Medical and Dental Plans
(in millions)	March 31, 2015			March 31, 2014			March 31, 2015			March 31, 2014
Service cost - benefits earned during the period	$	82		$	66		$	9		$	9
Interest cost on projected benefit obligations	79			77			15			16
Expected return on plan assets	(129		)	(113		)	(10		)	(10		)
Net amortization of:
Actuarial loss, net	47			25			9			5
Prior service cost (credit)	—			1			(12		)	(9		)
Total cost	79			56			11			11
Less: Discontinued operations	1			4			—			—
Net cost — continuing operations	$	78		$	52		$	11		$	11

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Financial Instruments, Derivatives and Fair Value Measures (Tables)

3 Months Ended

Mar. 31, 2015

Financial Instruments, Derivatives and Fair Value Measures

Summary of the amounts and location of certain derivative financial instruments

	Fair Value - Assets					Fair Value - Liabilities
(in millions)	March 31, 2015		Dec. 31, 2014		Balance Sheet Caption	March 31, 2015		Dec. 31, 2014		Balance Sheet Caption
Interest rate swaps designated as fair value hedges	$	150	$	101	Deferred income taxes and other assets	$	—	$	—	n/a
Foreign currency forward exchange contracts:
Hedging instruments	120		107		Prepaid expenses, deferred income taxes, and other receivables	10		—		Other accrued liabilities
Others not designated as hedges	324		150		Prepaid expenses, deferred income taxes, and other receivables	107		130		Other accrued liabilities
Debt designated as a hedge of net investment in a foreign subsidiary	—		—		n/a	442		445		Short-term borrowings
	$	594	$	358		$	559	$	575

Schedule of derivatives gain (loss) in OCI and earnings

	Gain (loss) Recognized in Other Comprehensive Income (loss)					Income (expense) and Gain (loss) Reclassified into Income
(in millions)	2015		2014			2015			2014			Income Statement Caption
Foreign currency forward exchange contracts designated as cash flow hedges	$	43	$	2		$	17		$	3		Cost of products sold
Debt designated as a hedge of net investment in a foreign subsidiary	3		(11		)	—			—			n/a
Interest rate swaps designated as fair value hedges	n/a		n/a			49			11			Interest expense
Foreign currency forward exchange contracts not designated as a hedge	n/a		n/a			(16		)	(13		)	Net foreign exchange (gain) loss

Schedule of carrying values and fair values of certain financial instruments

	March 31, 2015						December 31, 2014
(in millions)	Carrying Value			Fair Value			Carrying Value			Fair Value
Investment Securities:
Equity securities	$	6,261		$	6,261		$	212		$	212
Other	17			17			17			17
Total Long-term Debt	(5,982		)	(6,749		)	(3,463		)	(4,113		)
Foreign Currency Forward Exchange Contracts:
Receivable position	444			444			263			263
(Payable) position	(117		)	(117		)	(135		)	(135		)
Interest Rate Hedge Contracts:
Receivable position	150			150			101			101

Schedule of assets and liabilities measured at fair value on a recurring basis

			Basis of Fair Value Measurement
(in millions)	Outstanding Balances		Quoted Prices in Active Markets		Significant Other Observable Inputs		Significant Unobservable Inputs
March 31, 2015:
Equity securities	$	6,043	$	9	$	6,034	$	—
Interest rate swap derivative financial instruments	150		—		150		—
Foreign currency forward exchange contracts	444		—		444		—
Total Assets	$	6,637	$	9	$	6,628	$	—
Fair value of hedged long-term debt	$	4,173	$	—	$	4,173	$	—
Foreign currency forward exchange contracts	117		—		117		—
Contingent consideration related to business combinations	250		—		—		250
Total Liabilities	$	4,540	$	—	$	4,290	$	250
December 31, 2014:
Equity securities	$	9	$	9	$	—	$	—
Interest rate swap derivative financial instruments	101		—		101		—
Foreign currency forward exchange contracts	263		—		263		—
Total Assets	$	373	$	9	$	364	$	—
Fair value of hedged long-term debt	$	1,637	$	—	$	1,637	$	—
Foreign currency forward exchange contracts	135		—		135		—
Contingent consideration related to business combinations	243		—		—		243
Total Liabilities	$	2,015	$	—	$	1,772	$	243

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Financial Instruments, Derivatives and Fair Value Measures (Details 4) (USD $) In Millions, unless otherwise specified	Mar. 31, 2015	Dec. 31, 2014
Fair value, asset and liability measures
Fair Value - Assets	$ 594	$ 358
Fair Value - Liabilities	559	575
Recurring | Fair value
Fair value, asset and liability measures
Equity securities	6,043	9
Interest rate swap derivative financial instruments, assets	150	101
Total Assets	6,637	373
Fair value of hedged long-term debt	4,173	1,637
Contingent consideration related to business combinations	250	243
Total Liabilities	4,540	2,015
Recurring | Fair value | Foreign currency forward exchange contracts
Fair value, asset and liability measures
Fair Value - Assets	444	263
Fair Value - Liabilities	117	135
Recurring | Quoted Prices in Active Markets
Fair value, asset and liability measures
Equity securities	9	9
Total Assets	9	9
Recurring | Significant Other Observable Inputs
Fair value, asset and liability measures
Equity securities	6,034
Interest rate swap derivative financial instruments, assets	150	101
Total Assets	6,628	364
Fair value of hedged long-term debt	4,173	1,637
Total Liabilities	4,290	1,772
Recurring | Significant Other Observable Inputs | Foreign currency forward exchange contracts
Fair value, asset and liability measures
Fair Value - Assets	444	263
Fair Value - Liabilities	117	135
Recurring | Significant Unobservable Inputs
Fair value, asset and liability measures
Contingent consideration related to business combinations	250	243
Total Liabilities	$ 250	$ 243

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Segment Information (Tables)

3 Months Ended

Mar. 31, 2015

Segment Information

Schedule of segment and geographic area information

	Three Months Ended March 31
	Net Sales to External Customers				Operating Earnings
(in millions)	2015		2014		2015			2014
Established Pharmaceutical Products	$	897	$	681	$	167		$	121
Nutritional Products	1,669		1,631		350			283
Diagnostic Products	1,093		1,117		276			222
Vascular Products	698		738		284			221
Total Reportable Segments	4,357		4,167		1,077			847
Other	540		588
Net Sales	$	4,897	$	4,755
Corporate functions and benefit plans costs					(117		)	(58		)
Non-reportable segments					55			66
Net interest expense					(16		)	(20		)
Share-based compensation (a)					(148		)	(116		)
Amortization of intangible assets					(156		)	(127		)
Other, net (b)					(42		)	(251		)
Earnings from continuing operations before taxes					$	653		$	341

(a) Approximately 40 to 45 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) The decrease from 2014 to 2015 primarily reflects lower charges for cost reduction initiatives.

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Discontinued Operations (Details) (USD $) Share data in Millions, unless otherwise specified	3 Months Ended	0 Months Ended		3 Months Ended	0 Months Ended
	Mar. 31, 2015	Feb. 27, 2015	Feb. 10, 2015	Mar. 31, 2014	Feb. 27, 2015	Dec. 31, 2014
Proceeds from the disposition of business	$ 230,000,000
After Tax Gain	1,737,000,000
Trade receivables, net	91,000,000					498,000,000
Total inventories	54,000,000					254,000,000
Prepaid expenses, deferred income taxes, and other receivables	28,000,000					140,000,000
Current assets held for disposition	173,000,000					892,000,000
Net property and equipment	2,000,000					125,000,000
Intangible assets, net of amortization						804,000,000
Goodwill						950,000,000
Deferred income taxes and other assets	1,000,000					55,000,000
Non-current assets held for disposition	3,000,000					1,934,000,000
Total assets held for disposition	176,000,000					2,826,000,000
Trade accounts payable	286,000,000					423,000,000
Salaries, wages, commissions and other accrued liabilities	15,000,000					257,000,000
Current liabilities held for disposition	301,000,000					680,000,000
Post-employment obligations, deferred income taxes and other long-term liabilities						108,000,000
Non-current liabilities held for disposition						108,000,000
Total liabilities held for disposition	301,000,000					788,000,000
Developed markets branded generics pharmaceuticals business
Amount of shares received for sale of generics pharmaceuticals business to Mylan Inc		5,770,000,000			5,770,000,000
Period of notice require to terminate manufacturing supply of products	2 years
After Tax Gain		1,600,000,000
Developed markets branded generics pharmaceuticals business | Minimum
Period for providing manufacturing supply of products	3 years
Developed markets branded generics pharmaceuticals business | Maximum
Period of transition services	2 years
Period for providing manufacturing supply of products	10 years
Animal Health Business
Proceeds from the disposition of business			230,000,000
After Tax Gain			131,000,000
AbbVie | Proprietary Pharmaceuticals Business Assets and Liabilities Held for Disposal
Prepaid assets	164,000,000
AbbVie | Discontinued operations
Earnings from discontinued operations, net tax benefits	$ 13,000,000			$ 36,000,000
Mylan | Developed markets branded generics pharmaceuticals business
Number of shares received for sale of generics pharmaceuticals business to Mylan Inc					110
Mylan NV | Developed markets branded generics pharmaceuticals business
Percentage of shares received for sale of generics pharmaceuticals business to Mylan Inc		22.00%			22.00%

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Basis of Presentation

3 Months Ended

Mar. 31, 2015

Basis of Presentation

Basis of Presentation

Note 1 — Basis of Presentation

The accompanying unaudited, condensed consolidated financial statements have been prepared pursuant to rules and regulations of the Securities and Exchange Commission and, therefore, do not include all information and footnote disclosures normally included in audited financial statements.  However, in the opinion of management, all adjustments (which include only normal adjustments) necessary to present fairly the results of operations, financial position and cash flows have been made.  It is suggested that these statements be read in conjunction with the financial statements included in Abbott’s Annual Report on Form 10-K for the year ended December 31, 2014.  The consolidated financial statements include the accounts of the parent company and subsidiaries, after elimination of intercompany transactions.

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Discontinued Operations (Details 2) (USD $) In Millions, unless otherwise specified	3 Months Ended		0 Months Ended
	Mar. 31, 2015	Mar. 31, 2014	Feb. 27, 2015	Feb. 10, 2015
Disposal Group, Including Discontinued Operation, Income Statement Disclosures [Abstract]
Net sales	$ 256	$ 489
Pretax income	25	82
Income Tax Expense (Benefit)	(1)	(69)
Net income	26	151
Discontinued Operation, Gain (Loss) on Disposal of Discontinued Operation, Net of Tax [Abstract]
Pretax Gain	2,821
Tax Expenses	1,100
After Tax Gain	1,737
Developed markets branded generics pharmaceuticals business
Discontinued Operation, Gain (Loss) on Disposal of Discontinued Operation, Net of Tax [Abstract]
After Tax Gain			1,600
Developed markets generics pharmaceuticals and animal health business
Disposal Group, Including Discontinued Operation, Income Statement Disclosures [Abstract]
Net sales	256	489
Pretax income	25	82
Income Tax Expense (Benefit)	12	(33)
Net income	13	115
Discontinued Operation, Gain (Loss) on Disposal of Discontinued Operation, Net of Tax [Abstract]
Pretax Gain	2,821
Tax Expenses	1,084
After Tax Gain	1,737
Animal Health Business
Discontinued Operation, Gain (Loss) on Disposal of Discontinued Operation, Net of Tax [Abstract]
After Tax Gain				131
AbbVie
Disposal Group, Including Discontinued Operation, Income Statement Disclosures [Abstract]
Income Tax Expense (Benefit)	(13)	(36)
Net income	$ 13	$ 36

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Incentive Stock Programs (Details) (USD $) In Millions, except Share data, unless otherwise specified	3 Months Ended
	Mar. 31, 2015
Share-based Compensation Arrangement by Share-based Payment Award
Incentive stock programs, shares reserved for future grants	87,000,000
Total unrecognized compensation cost	$ 288
Stock options
Share-based Compensation Arrangement by Share-based Payment Award
Grants in period, stock options (in shares)	5,057,287
Stock options outstanding, number of shares	38,316,478
Exercisable options, number of shares	28,926,890
Stock options outstanding, weighted-average remaining life	4 years 10 months 24 days
Exercisable options, weighted-average remaining life	3 years 6 months
Stock options outstanding, weighted-average exercise price (in dollars per share)	$ 30.66
Exercisable options, weighted-average exercise price (in dollars per share)	$ 26.76
Aggregate intrinsic value of options outstanding	605
Aggregate intrinsic value of options exercisable	$ 567
Total unrecognized compensation cost, recognition period	3 years
Restricted stock awards
Share-based Compensation Arrangement by Share-based Payment Award
Grants in period, restricted stock (in shares)	634,362
Restricted stock units
Share-based Compensation Arrangement by Share-based Payment Award
Grants in period, restricted stock (in shares)	5,398,049

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Condensed Consolidated Statement of Earnings (USD $) In Millions, except Share data in Thousands, unless otherwise specified	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014
Condensed Consolidated Statement of Earnings
Net Sales	$ 4,897	$ 4,755
Cost of products sold, excluding amortization of intangible assets	2,081	2,274
Amortization of intangible assets	156	127
Research and development	313	369
Selling, general and administrative	1,737	1,620
Total operating cost and expenses	4,287	4,390
Operating earnings	610	365
Interest expense	37	36
Interest (income)	(21)	(16)
Net foreign exchange (gain) loss	(54)	1
Other (income) expense, net	(5)	3
Earnings from continuing operations before taxes	653	341
Taxes on earnings from continuing operations	124	117
Earnings from continuing operations	529	224
Earnings from discontinued operations, net of tax	26	151
Gain on sale of discontinued operations, net of tax	1,737
Net earnings from discontinued operations, net of tax	1,763	151
Net Earnings	$ 2,292	$ 375
Basic Earnings Per Common Share
Continuing operations (in dollars per share)	$ 0.35	$ 0.14
Discontinued operations (in dollars per share)	$ 1.17	$ 0.10
Net earnings (in dollars per share)	$ 1.52	$ 0.24
Diluted Earnings Per Common Share
Continuing operations (in dollars per share)	$ 0.35	$ 0.14
Discontinued operations (in dollars per share)	$ 1.16	$ 0.10
Net earnings (in dollars per share)	$ 1.51	$ 0.24
Cash Dividends Declared Per Common Share (in dollars per share)	$ 0.24	$ 0.22
Average Number of Common Shares Outstanding Used for Basic Earnings Per Common Share (in shares)	1,504,995	1,532,810
Dilutive Common Stock Options (in shares)	10,542	14,881
Average Number of Common Shares Outstanding Plus Dilutive Common Stock Options (in shares)	1,515,537	1,547,691
Outstanding Common Stock Options Having No Dilutive Effect (in shares)	5,263	4,421

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Litigation and Environmental Matters (Details) (USD $) In Millions, unless otherwise specified	Mar. 31, 2015
Loss Contingencies
Maximum expected cleanup exposure for individual site	$ 4
Maximum expected cleanup exposure in aggregate	15
Other legal proceedings and environmental exposures
Loss Contingencies
Other legal proceedings or environmental exposure, minimum	70
Other legal proceedings or environmental exposure, maximum	85
Recorded reserve balance for legal proceedings and exposures	$ 80

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Consolidated Balance Sheet (Parenthetical) (USD $) In Millions, except Share data, unless otherwise specified	Mar. 31, 2015	Dec. 31, 2014
Condensed Consolidated Balance Sheet
Trade receivables, allowances (in dollars)	$ 317	$ 310
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	1,698,124,396	1,694,929,949
Common shares held in treasury, shares	209,367,078	186,894,515

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Business Acquisitions (Details) (USD $)	3 Months Ended	0 Months Ended		1 Months Ended	12 Months Ended
	Mar. 31, 2015	Sep. 26, 2014	Sep. 26, 2014	Dec. 31, 2014	Dec. 31, 2014
Minimum
Allocation of the fair value
Amortization period of acquired intangible assets	2 years
Maximum
Allocation of the fair value
Amortization period of acquired intangible assets	20 years
Average
Allocation of the fair value
Amortization period of acquired intangible assets	12 years
CFR Pharmaceuticals SA
Business acquisitions
Cash paid for business acquisition			$ 2,900,000,000
Net cash paid, net of cash on hand of acquired company			2,800,000,000
Assumed debt		570,000,000	570,000,000
Acquisition cost			3,400,000,000
Percentage of voting interest acquired		99.90%	99.90%
Fair value of the non-controlling interest at the acquisition date		3,000,000	3,000,000
Allocation of the fair value
Acquired intangible assets, non-deductible		1,800,000,000	1,800,000,000
Goodwill, non-deductible		1,600,000,000
Acquired net tangible assets		60,000,000	60,000,000
Deferred income taxes recorded at acquisition		(540,000,000)	(540,000,000)
Total preliminary allocation of fair value		2,920,000,000	2,920,000,000
Cash and cash equivalents		94,000,000	94,000,000
Trade accounts receivable		179,000,000	179,000,000
Inventory		169,000,000	169,000,000
Other current assets		51,000,000	51,000,000
Property and equipment		209,000,000	209,000,000
Other long-term assets		138,000,000	138,000,000
Borrowings		570,000,000	570,000,000
Trade accounts payable and other current liabilities		195,000,000	195,000,000
Other noncurrent liabilities		15,000,000	15,000,000
Pro forma financial information
Annualized net sales expected			800,000,000
CFR Pharmaceuticals SA | Minimum
Allocation of the fair value
Amortization period of acquired intangible assets			12 years
CFR Pharmaceuticals SA | Maximum
Allocation of the fair value
Amortization period of acquired intangible assets			16 years
CFR Pharmaceuticals SA | Average
Allocation of the fair value
Amortization period of acquired intangible assets			15 years
Veropharm
Business acquisitions
Cash paid for business acquisition				315,000,000
Acquisition cost					410,000,000
Percentage of voting interest acquired				98.00%	98.00%
Fair value of the non-controlling interest at the acquisition date				5,000,000	5,000,000
Assumed debt				90,000,000	90,000,000
Allocation of the fair value
Goodwill, non-deductible				110,000,000
Deferred income taxes recorded at acquisition				(35,000,000)	(35,000,000)
Amortization period of acquired intangible assets				16 years
Trade accounts receivable				45,000,000	45,000,000
Inventory				25,000,000	25,000,000
Property and equipment				170,000,000	170,000,000
Other current liabilities				5,000,000	5,000,000
Pro forma financial information
Non-deductible definite-lived intangible assets				100,000,000	100,000,000
Topera
Business acquisitions
Cash paid for business acquisition				250,000,000
Allocation of the fair value
Goodwill, non-deductible				175,000,000
Deferred income taxes recorded at acquisition				(105,000,000)	(105,000,000)
Amortization period of acquired intangible assets				16 years
Pro forma financial information
Additional payments upon completion of certain development, regulatory and sales milestones				300,000,000	300,000,000
Non-deductible acquired in-process research and development				20,000,000	20,000,000
Non-deductible definite-lived intangible assets				325,000,000	325,000,000
Contingent consideration				$ 165,000,000	$ 165,000,000

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Discontinued Operations (Tables)

3 Months Ended

Mar. 31, 2015

Discontinued Operations.

Components of discontinued operations

	Three Months Ended March 31
(in millions)	2015			2014
Net Sales
Developed markets generics pharmaceuticals and animal health businesses	$	256		$	489
AbbVie	—			—
Total	$	256		$	489
Earnings Before Tax
Developed markets generics pharmaceuticals and animal health businesses	$	25		$	82
AbbVie	—			—
Total	$	25		$	82
Income Tax Expense (Benefit)
Developed markets generics pharmaceuticals and animal health businesses	$	12		$	(33	)
AbbVie	(13		)	(36		)
Total	$	(1	)	$	(69	)
Net Earnings
Developed markets generics pharmaceuticals and animal health businesses	$	13		$	115
AbbVie	13			36
Total	$	26		$	151

Summary of the assets and liabilities held for sale

(in millions)	March 31, 2015		December 31, 2014
Trade receivables, net	$	91	$	498
Total inventories	54		254
Prepaid expenses, deferred income taxes, and other receivables	28		140
Current assets held for disposition	173		892
Net property and equipment	2		125
Intangible assets, net of amortization	—		804
Goodwill	—		950
Deferred income taxes and other assets	1		55
Non-current assets held for disposition	3		1,934
Total assets held for disposition	$	176	$	2,826
Trade accounts payable	$	286	$	423
Salaries, wages, commissions and other accrued liabilities	15		257
Current liabilities held for disposition	301		680
Post-employment obligations, deferred income taxes and other long-term liabilities	—		108
Total liabilities held for disposition	$	301	$	788

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Goodwill and Intangible Assets (Details) (USD $) In Millions, unless otherwise specified	3 Months Ended
	Mar. 31, 2015	Dec. 31, 2014	Sep. 26, 2014
Goodwill and intangible assets information
Goodwill	$ 9,855	$ 10,067
Foreign currency translation adjustments decreased goodwill	267
Purchase price allocation adjustments associated with increased (decreased) goodwill	55
Amount of reduction of goodwill relating to impairments	0
Developed markets branded generics pharmaceuticals business
Goodwill and intangible assets information
Goodwill	894
Increased intangible assets	738
Established Pharmaceutical Products
Goodwill and intangible assets information
Goodwill	3,300
Nutritional Products
Goodwill and intangible assets information
Goodwill	286
Diagnostic Products
Goodwill and intangible assets information
Goodwill	444
Vascular Products
Goodwill and intangible assets information
Goodwill	2,900
CFR Pharmaceuticals SA
Goodwill and intangible assets information
Increased intangible assets			$ 1,800

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Other Comprehensive Income (Tables)

3 Months Ended

Mar. 31, 2015

Other Comprehensive Income

Schedule of the changes in accumulated other comprehensive income (loss) from continuing operations, net of income taxes

	Three Months Ended March 31
	Cumulative Foreign Currency Translation Adjustments						Net Actuarial Losses and Prior Service Costs and Credits						Cumulative Unrealized Gains on Marketable Equity Securities					Cumulative Gains on Derivative Instruments Designated as Cash Flow Hedges
(in millions)	2015			2014			2015			2014			2015		2014			2015			2014
Balance at December 31, 2014 and 2013	$	(2,924	)	$	(718	)	$	(2,229	)	$	(1,312	)	$	1	$	13		$	99		$	5
Impact of business dispositions	108			—			19			—			—		—			—			—
Other comprehensive (loss) income before reclassifications	(911		)	62			—			—			173		1			43			(1		)
Amounts reclassified from accumulated other comprehensive income	—			—			31			16			—		(1		)	(17		)	1
Net current period comprehensive (loss) income	(911		)	62			31			16			173		—			26			—
Balance at March 31	$	(3,727	)	$	(656	)	$	(2,179	)	$	(1,296	)	$	174	$	13		$	125		$	5

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Consolidated Statement of Cash Flows (USD $) In Millions, unless otherwise specified	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014
Cash Flow From (Used in) Operating Activities:
Net earnings	$ 2,292	$ 375
Adjustments to reconcile net earnings to net cash from operating activities -
Depreciation	215	224
Amortization of intangibles	156	174
Share-based compensation	148	119
Gain on sale of discontinued operations	(2,821)
Trade receivables	(90)	82
Inventories	(128)	(90)
Other, net	230	(548)
Net Cash From Operating Activities	2	336
Cash Flow From (Used in) Investing Activities:
Acquisitions of property and equipment	(235)	(255)
Proceeds from business disposition	230
Purchases of investment securities, net	(213)	(367)
Other	13	27
Net Cash (Used in) Investing Activities	(205)	(595)
Cash Flow From (Used in) Financing Activities:
Net (repayments of) proceeds from short-term debt and other	(1,471)	1,213
Proceeds from the issuance of long-term debt	2,485
Repayments of long-term debt	(10)
Purchases of common shares	(1,346)	(2,192)
Proceeds from stock options exercised, including income tax benefit	156	170
Dividends paid	(364)	(343)
Net Cash (Used in) Financing Activities	(550)	(1,152)
Effect of exchange rate changes on cash and cash equivalents	(84)	(4)
Net Decrease in Cash and Cash Equivalents	(837)	(1,415)
Cash and Cash Equivalents, Beginning of Year	4,063	3,475
Cash and Cash Equivalents, End of Period	$ 3,226	$ 2,060

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Consolidated Statement of Comprehensive Income (USD $) In Millions, unless otherwise specified	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014	Dec. 31, 2014
Condensed Consolidated Statement of Comprehensive Income
Net Earnings	$ 2,292	$ 375
Foreign currency translation (loss) gain adjustments	(911)	62
Net actuarial gains (losses) and amortization of net actuarial (losses) and prior service (cost) and credits, net of taxes of $15 in 2015, $8 in 2014	31	16
Unrealized gains on marketable equity securities, net of taxes of $88 in 2015 and nil in 2014	173
Net adjustments for derivative instruments designated as cash flow hedges, net of taxes of $7 in 2015, nil in 2014	26
Other comprehensive (loss) income	(681)	78
Comprehensive Income	1,611	453
Supplemental Accumulated Other Comprehensive Income (Loss) Information, net of tax
Cumulative foreign currency translation (loss) adjustments	(3,727)		(2,924)
Net actuarial (losses) and prior service (cost) and credits	(2,179)		(2,229)
Cumulative unrealized gains on marketable equity securities	174		1
Cumulative gains on derivative instruments designated as cash flow hedges	$ 125		$ 99

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Litigation and Environmental Matters

3 Months Ended

Mar. 31, 2015

Litigation and Environmental Matters

Litigation and Environmental Matters

Note 10 — Litigation and Environmental Matters

Abbott has been identified as a potentially responsible party for investigation and cleanup costs at a number of locations in the United States and Puerto Rico under federal and state remediation laws and is investigating potential contamination at a number of company-owned locations. Abbott has recorded an estimated cleanup cost for each site for which management believes Abbott has a probable loss exposure. No individual site cleanup exposure is expected to exceed $4 million, and the aggregate cleanup exposure is not expected to exceed $15 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 $70 million to $85 million. The recorded accrual balance at March 31, 2015 for these proceedings and exposures was approximately $80 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.

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Document and Entity Information	3 Months Ended
	Mar. 31, 2015
Document and Entity Information
Entity Registrant Name	ABBOTT LABORATORIES
Entity Central Index Key	0000001800
Document Type	10-Q
Document Period End Date	Mar. 31, 2015
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity Current Reporting Status	Yes
Entity Filer Category	Large Accelerated Filer
Entity Common Stock, Shares Outstanding	1,488,757,318
Document Fiscal Year Focus	2015
Document Fiscal Period Focus	Q1

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Post-Employment Benefits

3 Months Ended

Mar. 31, 2015

Post-Employment Benefits

Post-Employment Benefits

Note 11 — Post-Employment Benefits

Retirement plans consist of defined benefit, defined contribution, and medical and dental plans.  Net cost recognized in continuing operations for the three months ended March 31 for Abbott’s major defined benefit plans and post-employment medical and dental benefit plans is as follows:

	Defined Benefit Plans						Medical and Dental Plans
(in millions)	March 31, 2015			March 31, 2014			March 31, 2015			March 31, 2014
Service cost - benefits earned during the period	$	82		$	66		$	9		$	9
Interest cost on projected benefit obligations	79			77			15			16
Expected return on plan assets	(129		)	(113		)	(10		)	(10		)
Net amortization of:
Actuarial loss, net	47			25			9			5
Prior service cost (credit)	—			1			(12		)	(9		)
Total cost	79			56			11			11
Less: Discontinued operations	1			4			—			—
Net cost — continuing operations	$	78		$	52		$	11		$	11

Abbott funds its domestic defined benefit plans according to IRS funding limitations.  International pension plans are funded according to similar regulations.  In the first quarters of 2015 and 2014, $529 million and $312 million, respectively, were contributed to defined benefit plans and $24 million and $40 million, respectively, were contributed to the post-employment medical and dental benefit plans.

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Consolidated Statement of Comprehensive Income (Parenthetical) (USD $) In Millions, unless otherwise specified	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014
Condensed Consolidated Statement of Comprehensive Income
Net actuarial gains (losses) and amortization of net actuarial (losses) and prior service (cost) and credits, taxes	$ 15	$ 8
Unrealized gains on marketable equity securities, taxes	88
Net adjustments for derivative instruments designated as cash flow hedges, taxes	$ 7

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Business Acquisitions

3 Months Ended

Mar. 31, 2015

Business Acquisitions

Business Acquisitions

Note 5 — Business Acquisitions

In September 2014, Abbott completed the acquisition of the controlling interest in CFR Pharmaceuticals S.A. (CFR) for approximately $2.9 billion in cash ($2.8 billion net of CFR cash on hand at closing). Including the assumption of approximately $570 million of debt, the total cost of the acquisition was $3.4 billion.  The acquisition of CFR more than doubles Abbott’s branded generics pharmaceutical presence in Latin America and further expands its presence in emerging markets.  CFR’s financial results are included in Abbott’s financial statements beginning on September 26, 2014, the date that Abbott acquired control of this business. Abbott owns 99.9% of the outstanding ordinary shares of CFR.  The fair value of the non-controlling interest at the acquisition date was approximately $3 million.  The acquisition was funded with cash and cash equivalents and short-term investments.  The preliminary allocation of the fair value of the acquisition is shown in the table below.  The allocation of the fair value of the acquisition will be finalized when the valuation is completed.

(in billions)
Acquired intangible assets, non-deductible	$	1.80
Goodwill, non-deductible	1.60
Acquired net tangible assets	0.06
Deferred income taxes recorded at acquisition	(0.54		)
Total preliminary allocation of fair value	$	2.92

Acquired intangible assets consist primarily of product rights for currently marketed products and are amortized over 12 to 16 years (average of 15 years).  The goodwill is primarily attributable to intangible assets that do not qualify for separate recognition.  The goodwill is identifiable to the Established Pharmaceutical Products segment.  The acquired tangible assets consist primarily of cash and cash equivalents of approximately $94 million, trade accounts receivable of approximately $179 million, inventory of approximately $169 million, other current assets of approximately $51 million, property and equipment of approximately $209 million, and other long-term assets of approximately $138 million.  Assumed liabilities consist of borrowings of approximately $570 million, trade accounts payable and other current liabilities of approximately $195 million and other noncurrent liabilities of approximately $15 million.

Annualized net sales for CFR Pharmaceuticals are expected to total approximately $800 million. Had the acquisition of CFR Pharmaceuticals taken place on January 1, 2013, the consolidated net sales and earnings of Abbott would not have been significantly different from the reported amounts.

In December 2014, Abbott acquired control of Veropharm, a leading Russian pharmaceutical company for approximately $315 million excluding assumed debt. Through this acquisition, Abbott establishes a manufacturing footprint in Russia and obtains a portfolio of medicines that is well aligned with Abbott’s current pharmaceutical therapeutic areas of focus.  Abbott acquired control of Veropharm through its purchase of Limited Liability Company Garden Hills, the holding company that owns approximately 98 percent of Veropharm.  Including the assumption of approximately $90 million of debt and a minority interest with a fair value of $5 million, the total value of the acquired business was approximately $410 million.  The preliminary allocation of the fair value of the acquisition resulted in definite-lived non-deductible intangible assets of approximately $100 million, non-deductible goodwill of approximately $110 million, and net deferred tax liabilities of approximately $35 million.  Non-deductible goodwill is identifiable with the Established Pharmaceutical Products segment.  Additionally, Abbott acquired property, plant, and equipment of approximately $170 million, accounts receivable of approximately $45 million, inventory of approximately $25 million, and net other liabilities of approximately $5 million.  Acquired intangible assets consist of developed technology and are being amortized over 16 years.

In December 2014, Abbott completed the acquisition of Topera, Inc. for approximately $250 million in cash, plus additional payments up to $300 million to be made upon completion of certain regulatory and sales milestones.  The acquisition of Topera provides Abbott a foundational entry in the electrophysiology market.  The final allocation of the fair value of the acquisition resulted in non-deductible acquired in-process research and development of approximately $20 million, which is accounted for as an indefinite-lived intangible asset until regulatory approval or discontinuation, non-deductible definite-lived intangibles assets of approximately $325 million, non-deductible goodwill of approximately $175 million, net deferred tax liabilities of approximately $105 million, and contingent consideration of approximately $165 million.  The fair value of the contingent consideration was determined based on an independent appraisal.  Acquired intangible assets consist of developed technology and trademarks, and are being amortized over 16 years.

The preliminary allocations of fair value of the acquisitions of CFR Pharmaceuticals and Veropharm will be finalized when valuations are completed. Had the aggregate of the above acquisitions taken place on January 1, 2013, consolidated net sales and earnings would not have been significantly different from reported amounts.

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Other Comprehensive Income

3 Months Ended

Mar. 31, 2015

Other Comprehensive Income

Other Comprehensive Income

Note 4 — Other Comprehensive Income

The components of the changes in other comprehensive income from continuing operations, net of income taxes, are as follows:

	Three Months Ended March 31
	Cumulative Foreign Currency Translation Adjustments						Net Actuarial Losses and Prior Service Costs and Credits						Cumulative Unrealized Gains on Marketable Equity Securities					Cumulative Gains on Derivative Instruments Designated as Cash Flow Hedges
(in millions)	2015			2014			2015			2014			2015		2014			2015			2014
Balance at December 31, 2014 and 2013	$	(2,924	)	$	(718	)	$	(2,229	)	$	(1,312	)	$	1	$	13		$	99		$	5
Impact of business dispositions	108			—			19			—			—		—			—			—
Other comprehensive (loss) income before reclassifications	(911		)	62			—			—			173		1			43			(1		)
Amounts reclassified from accumulated other comprehensive income	—			—			31			16			—		(1		)	(17		)	1
Net current period comprehensive (loss) income	(911		)	62			31			16			173		—			26			—
Balance at March 31	$	(3,727	)	$	(656	)	$	(2,179	)	$	(1,296	)	$	174	$	13		$	125		$	5

Reclassified amounts for foreign currency translation are recorded in the Condensed Consolidated Statement of Earnings as Net foreign exchange loss (gain); gains 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 is included as a component of net periodic benefit plan costs; see Note 11 for additional details.

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Supplemental Financial Information (Tables)

3 Months Ended

Mar. 31, 2015

Supplemental Financial Information

Components of short-term and long-term investments

Short-term Investments	March 31,		December 31,
(in millions)	2015		2014
Equity securities	$	6,034	$	—
Other, primarily bank time deposits and U.S. treasury bills	589		397
Total	$	6,623	$	397

Long-term Investments
(in millions)
Equity securities	$	227	$	212
Other	17		17
Total	$	244	$	229

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Taxes on Earnings

3 Months Ended

Mar. 31, 2015

Taxes on Earnings

Taxes on Earnings

Note 12 — Taxes on Earnings

Taxes on earnings from continuing operations reflect the estimated annual effective rates and include charges for interest and penalties. In the first quarter of 2015 and 2014, taxes on earnings from continuing operations were not affected by any adjustments as the result of the resolution of various tax positions pertaining to prior years. Tax expense related to discontinued operations includes $665 million of tax expense on certain current-year funds earned outside the U. S. that were not designated as permanently reinvested overseas. Earnings from discontinued operations, net of tax, in the first quarter of 2015 also reflects the recognition of $13 million of net tax benefits primarily as a result of the resolution of various tax positions related to AbbVie’s operations for years prior to the separation. The conclusion of these tax matters decreased the gross amount of unrecognized tax benefits by approximately $16 million. Earnings from discontinued operations, net of tax, in the first quarter of 2014 reflects the recognition of $107 million of net tax benefits primarily as a result of the resolution of various tax positions related to the developed markets branded generics pharmaceuticals business, as well as AbbVie’s operations, for years prior to the separation. The conclusion of these tax matters decreased the gross amount of unrecognized tax benefits by approximately $102 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 by $525 million to $635 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 2011 are settled except for two issues.

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Incentive Stock Programs

3 Months Ended

Mar. 31, 2015

Incentive Stock Programs

Incentive Stock Programs

Note 8 — Incentive Stock Programs

In the first three months of 2015, Abbott granted 5,057,287 stock options, 634,362 restricted stock awards and 5,398,049 restricted stock units under its incentive stock programs.  At March 31, 2015, approximately 87 million shares were reserved for future grants.  Information regarding the number of options outstanding and exercisable at March 31, 2015 is as follows:

	Outstanding		Exercisable
Number of shares	38,316,478		28,926,890
Weighted average remaining life (years)	4.9		3.5
Weighted average exercise price	$	30.66	$	26.76
Aggregate intrinsic value (in millions)	$	605	$	567

The total unrecognized share-based compensation cost at March 31, 2015 amounted to approximately $288 million which is expected to be recognized over the next three years.

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Goodwill and Intangible Assets

3 Months Ended

Mar. 31, 2015

Goodwill and Intangible Assets

Goodwill and Intangible Assets

Note 6 — Goodwill and Intangible Assets

The total amount of goodwill reported was $9.855 billion at March 31, 2015 and $10.067 billion at December 31, 2014, which excluded goodwill classified as held for disposition.  As part of the disposal of the developed markets branded generics pharmaceuticals business in the first quarter of 2015, $894 million of goodwill was included as part of the net assets sold. In the first quarter of 2015, foreign currency translation adjustments decreased goodwill by approximately $267 million, while purchase price allocation adjustments associated with recent acquisitions increased goodwill by approximately $55 million.  The amount of goodwill related to reportable segments at March 31, 2015 was $3.3 billion for the Established Pharmaceutical Products segment, $286 million for the Nutritional Products segment, $444 million for the Diagnostic Products segment, and $2.9 billion for the Vascular Products segment.  There was no reduction of goodwill relating to impairments.

The gross amount of amortizable intangible assets, primarily product rights and technology was $10.9 billion as of March 31, 2015 and December 31, 2014, and accumulated amortization was $5.0 billion as of March 31, 2015 and $4.9 billion as of December 31, 2014. The December 31, 2014 amounts exclude the intangibles that were classified as held for disposition.  $738 million of intangibles were included in the net assets transferred as part of the disposal of the developed markets branded generics pharmaceuticals business in the first quarter of 2015. Indefinite-lived intangible assets, which relate to in-process research and development acquired in a business combination, was approximately $134 million at March 31, 2015 and December 31, 2014. Abbott’s estimated annual amortization expense for intangible assets is approximately $680 million in 2015, $660 million in 2016, $650 million in 2017, $570 million in 2018 and $530 million in 2019. Amortizable intangible assets are amortized over 2 to 20 years (weighted average 12 years).

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Restructuring Plans

3 Months Ended

Mar. 31, 2015

Restructuring Plans

Restructuring Plans

Note 7 — Restructuring Plans

In 2014, Abbott management approved plans to streamline operations in order to reduce costs and improve efficiencies in various Abbott businesses including nutritional and established pharmaceuticals businesses. In the first quarter of 2015, additional charges of approximately $13 million were recorded primarily for accelerated depreciation. The following summarizes the activity for the first three months of 2015 related to these restructuring actions and the status of the related accrual as of March 31, 2015:

(in millions)
Accrued balance at December 31, 2014	$	118
Payments and other adjustments	(15		)
Accrued balance at March 31, 2015	$	103

From 2013 to 2015, Abbott management approved various plans to reduce costs and improve efficiencies across various functional areas. In the first quarter of 2015, charges of approximately $8 million were recognized, of which approximately $1 million is recorded in Cost of products sold and approximately $7 million as Selling, general and administrative expense. In 2013, Abbott management also approved plans to streamline certain manufacturing operations in order to reduce costs and improve efficiencies in Abbott’s established pharmaceuticals business. In 2012, Abbott management approved plans to streamline various commercial operations in order to reduce costs and improve efficiencies in Abbott’s core diagnostics, established pharmaceuticals and nutritionals businesses. The following summarizes the activity for the first three months of 2015 related to these restructuring actions and the status of the related accrual as of March 31, 2015:

(in millions)
Accrued balance at December 31, 2014	$	135
Restructuring charges recorded in 2015	8
Payments and other adjustments	(34		)
Accrued balance at March 31, 2015	$	109

In 2013 and prior years, Abbott management approved plans to realign its vascular manufacturing operations and core diagnostics business in order to reduce costs. The following summarizes the activity for the first three months of 2015 related to these restructuring actions and the status of the related accrual as of March 31, 2015:

(in millions)
Accrued balance at December 31, 2014	$	39
Payments and other adjustments	(6		)
Accrued balance at March 31, 2015	$	33

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Financial Instruments, Derivatives and Fair Value Measures

3 Months Ended

Mar. 31, 2015

Financial Instruments, Derivatives and Fair Value Measures

Financial Instruments, Derivatives and Fair Value Measures

Note 9 — Financial Instruments, Derivatives and Fair Value Measures

Certain Abbott foreign subsidiaries enter into foreign currency forward exchange contracts to manage exposures to changes in foreign exchange rates for anticipated intercompany purchases by those subsidiaries whose functional currencies are not the U.S. dollar.  These contracts, with notional amounts totaling $1.5 billion at March 31, 2015 and December 31, 2014 are designated as cash flow hedges of the variability of the cash flows due to changes in foreign exchange rates and are recorded at fair value.  Accumulated gains and losses as of March 31, 2015 will be included in Cost of products sold at the time the products are sold, generally through the next twelve to eighteen months.  The amount of hedge ineffectiveness was not significant in 2015 and 2014.

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 and Japanese yen, 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, European currencies and Japanese yen.  At March 31, 2015 and December 31, 2014, Abbott held $13.8 billion and $14.1 billion, respectively, of such foreign currency forward exchange contracts.

Abbott has designated foreign denominated short-term debt as a hedge of the net investment in a foreign subsidiary of approximately $442 million and approximately $445 million as of March 31, 2015 and December 31, 2014, respectively.  Accordingly, changes in the reported value of this debt due to changes in exchange rates are recorded in Accumulated other comprehensive income (loss), net of tax.

Abbott is a party to interest rate hedge contracts totaling approximately $4.0 billion at March 31, 2015 and $1.5 billion at December 31, 2014 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.  No hedge ineffectiveness was recorded in income in 2015 or 2014 for these hedges.

The following table summarizes the amounts and location of certain derivative financial instruments as of March 31, 2015 and December 31, 2014:

	Fair Value - Assets					Fair Value - Liabilities
(in millions)	March 31, 2015		Dec. 31, 2014		Balance Sheet Caption	March 31, 2015		Dec. 31, 2014		Balance Sheet Caption
Interest rate swaps designated as fair value hedges	$	150	$	101	Deferred income taxes and other assets	$	—	$	—	n/a
Foreign currency forward exchange contracts:
Hedging instruments	120		107		Prepaid expenses, deferred income taxes, and other receivables	10		—		Other accrued liabilities
Others not designated as hedges	324		150		Prepaid expenses, deferred income taxes, and other receivables	107		130		Other accrued liabilities
Debt designated as a hedge of net investment in a foreign subsidiary	—		—		n/a	442		445		Short-term borrowings
	$	594	$	358		$	559	$	575

The following table summarizes the activity for foreign currency forward exchange contracts designated as cash flow hedges, debt designated as a hedge of net investment in a foreign subsidiary and the amounts and location of income (expense) and gain (loss) reclassified into income in the first three months of 2015 and 2014 and for certain other derivative financial instruments.  The amount of hedge ineffectiveness was not significant in 2015 and 2014 for these hedges.

	Gain (loss) Recognized in Other Comprehensive Income (loss)					Income (expense) and Gain (loss) Reclassified into Income
(in millions)	2015		2014			2015			2014			Income Statement Caption
Foreign currency forward exchange contracts designated as cash flow hedges	$	43	$	2		$	17		$	3		Cost of products sold
Debt designated as a hedge of net investment in a foreign subsidiary	3		(11		)	—			—			n/a
Interest rate swaps designated as fair value hedges	n/a		n/a			49			11			Interest expense
Foreign currency forward exchange contracts not designated as a hedge	n/a		n/a			(16		)	(13		)	Net foreign exchange (gain) loss

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 March 31, 2015 and December 31, 2014 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.

	March 31, 2015						December 31, 2014
(in millions)	Carrying Value			Fair Value			Carrying Value			Fair Value
Investment Securities:
Equity securities	$	6,261		$	6,261		$	212		$	212
Other	17			17			17			17
Total Long-term Debt	(5,982		)	(6,749		)	(3,463		)	(4,113		)
Foreign Currency Forward Exchange Contracts:
Receivable position	444			444			263			263
(Payable) position	(117		)	(117		)	(135		)	(135		)
Interest Rate Hedge Contracts:
Receivable position	150			150			101			101

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
(in millions)	Outstanding Balances		Quoted Prices in Active Markets		Significant Other Observable Inputs		Significant Unobservable Inputs
March 31, 2015:
Equity securities	$	6,043	$	9	$	6,034	$	—
Interest rate swap derivative financial instruments	150		—		150		—
Foreign currency forward exchange contracts	444		—		444		—
Total Assets	$	6,637	$	9	$	6,628	$	—
Fair value of hedged long-term debt	$	4,173	$	—	$	4,173	$	—
Foreign currency forward exchange contracts	117		—		117		—
Contingent consideration related to business combinations	250		—		—		250
Total Liabilities	$	4,540	$	—	$	4,290	$	250
December 31, 2014:
Equity securities	$	9	$	9	$	—	$	—
Interest rate swap derivative financial instruments	101		—		101		—
Foreign currency forward exchange contracts	263		—		263		—
Total Assets	$	373	$	9	$	364	$	—
Fair value of hedged long-term debt	$	1,637	$	—	$	1,637	$	—
Foreign currency forward exchange contracts	135		—		135		—
Contingent consideration related to business combinations	243		—		—		243
Total Liabilities	$	2,015	$	—	$	1,772	$	243

Equity securities are principally comprised of Mylan N.V. ordinary shares.  The fair value of the Mylan equity securities was determined based on the value of the publicly-traded ordinary shares adjusted for the restrictions related to the resale of these shares. 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.

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Other Comprehensive Income (Details) (USD $) In Millions, unless otherwise specified	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014	Dec. 31, 2014
Other comprehensive income from continuing operations, net of income taxes
Balance at the beginning of the period			$ (5,053)
Balance at the end of the period	(5,607)		(5,053)
Cumulative Foreign Currency Translation Adjustments
Other comprehensive income from continuing operations, net of income taxes
Balance at the beginning of the period	(2,924)	(718)
Impact of business dispositions	108
Other comprehensive (loss) income before reclassifications	(911)	62
Net current period comprehensive( loss) income	(911)	62
Balance at the end of the period	(3,727)	(656)
Net Actuarial Losses and Prior Service Costs and Credits
Other comprehensive income from continuing operations, net of income taxes
Balance at the beginning of the period	(2,229)	(1,312)
Impact of business dispositions	19
Amounts reclassified from accumulated other comprehensive income	31	16
Net current period comprehensive( loss) income	31	16
Balance at the end of the period	(2,179)	(1,296)
Cumulative Unrealized Gains on Marketable Equity Securities
Other comprehensive income from continuing operations, net of income taxes
Balance at the beginning of the period	1	13
Other comprehensive (loss) income before reclassifications	173	1
Amounts reclassified from accumulated other comprehensive income		(1)
Net current period comprehensive( loss) income	173
Balance at the end of the period	174	13
Cumulative Gains on Derivative Instruments Designated as Cash Flow Hedges
Other comprehensive income from continuing operations, net of income taxes
Balance at the beginning of the period	99	5
Other comprehensive (loss) income before reclassifications	43	(1)
Amounts reclassified from accumulated other comprehensive income	(17)	1
Net current period comprehensive( loss) income	26
Balance at the end of the period	$ 125	$ 5

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Subsequent Event

3 Months Ended

Mar. 31, 2015

Subsequent Event.

Subsequent Event

Note 14 — Subsequent Event

In April 2015, Abbott sold 40.3 million of the 110 million ordinary shares of Mylan N.V. received in the sale of the developed markets branded generics pharmaceuticals business to Mylan.  In the second quarter of 2015, Abbott will record a pretax gain of $206 million on $2.29 billion in net proceeds from the sale of these shares.

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Restructuring Plans (Tables)

3 Months Ended

Mar. 31, 2015

Restructuring Plan 2014

Restructuring costs

Schedule of restructuring activity

(in millions)
Accrued balance at December 31, 2014	$	118
Payments and other adjustments	(15		)
Accrued balance at March 31, 2015	$	103

Restructuring Plan 2015 and 2013

Restructuring costs

Schedule of restructuring activity

(in millions)
Accrued balance at December 31, 2014	$	135
Restructuring charges recorded in 2015	8
Payments and other adjustments	(34		)
Accrued balance at March 31, 2015	$	109

Restructuring Plan 2013 and Prior Years

Restructuring costs

Schedule of restructuring activity

(in millions)
Accrued balance at December 31, 2014	$	39
Payments and other adjustments	(6		)
Accrued balance at March 31, 2015	$	33

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Segment Information (Details 2) (USD $) In Millions, unless otherwise specified	3 Months Ended
	Mar. 31, 2015		Mar. 31, 2014
Segment Reporting Information
Non-reportable segments	$ 610		$ 365
Amortization of intangible assets	(156)		(127)
Earnings from continuing operations before taxes	653		341
Minimum
Segment Reporting Information
Annual share-based awards recognized in first quarter (as a percent)	40.00%
Maximum
Segment Reporting Information
Annual share-based awards recognized in first quarter (as a percent)	45.00%
Total Reportable Segments
Segment Reporting Information
Earnings from continuing operations before taxes	1,077		847
Corporate functions
Segment Reporting Information
Corporate functions and benefit plans costs	(117)		(58)
Reconciling items
Segment Reporting Information
Non-reportable segments	55		66
Net interest expense	16		20
Share-based compensation	(148)	[1]	(116)	[1]
Amortization of intangible assets	(156)		(127)
Other, net	(42)	[2]	(251)	[2]
Earnings from continuing operations before taxes	$ 653		$ 341

[1] Approximately 40 to 45 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.

[2] The decrease from 2014 to 2015 primarily reflects lower charges for cost reduction initiatives

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Financial Instruments, Derivatives and Fair Value Measures (Details) (USD $)	3 Months Ended	12 Months Ended
	Mar. 31, 2015	Dec. 31, 2014
Derivative instruments, notional amount and fair value
Fair Value - Assets	$ 594,000,000	$ 358,000,000
Fair Value - Liabilities	559,000,000	575,000,000
Designated as hedging instrument | Short-term borrowings | Net investment hedges
Derivative instruments, notional amount and fair value
Fair Value - Liabilities	442,000,000	445,000,000
Designated as hedging instrument | Interest rate swaps | Fair value hedges
Derivative instruments, notional amount and fair value
Notional amount of cash flow hedge instruments	4,000,000,000	1,500,000,000
Amount of hedge ineffectiveness recorded in income	0	0
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	150,000,000	101,000,000
Designated as hedging instrument | Foreign currency forward exchange contracts | Cash flow hedges
Derivative instruments, notional amount and fair value
Notional amount of cash flow hedge instruments	1,500,000,000	1,500,000,000
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 | Foreign currency forward exchange contracts | Prepaid expenses, deferred income taxes, and other receivables
Derivative instruments, notional amount and fair value
Fair Value - Assets	120,000,000	107,000,000
Fair Value - Liabilities	10,000,000
Not designated as hedging instrument | Foreign currency forward exchange contracts
Derivative instruments, notional amount and fair value
Notional amount of cash flow hedge instruments	13,800,000,000	14,100,000,000
Not designated as hedging instrument | Foreign currency forward exchange contracts | Prepaid expenses, deferred income taxes, and other receivables
Derivative instruments, notional amount and fair value
Fair Value - Assets	324,000,000	150,000,000
Not designated as hedging instrument | Foreign currency forward exchange contracts | Other accrued liabilities
Derivative instruments, notional amount and fair value
Fair Value - Liabilities	$ 107,000,000	$ 130,000,000

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Consolidated Balance Sheet (USD $) In Millions, unless otherwise specified	Mar. 31, 2015	Dec. 31, 2014
Current Assets:
Cash and cash equivalents	$ 3,226	$ 4,063
Short-term investments	6,623	397
Trade receivables, less allowances of $317 in 2015 and $310 in 2014	3,481	3,586
Inventories:
Finished products	1,780	1,807
Work in process	287	278
Materials	556	558
Total inventories	2,623	2,643
Prepaid expenses, deferred income taxes, and other receivables	3,859	3,680
Current assets held for disposition	173	892
Total Current Assets	19,985	15,261
Investments	244	229
Property and Equipment, at cost	12,251	12,632
Less: accumulated depreciation and amortization	6,552	6,697
Net property and equipment	5,699	5,935
Intangible assets, net of amortization	5,979	6,198
Goodwill	9,855	10,067
Deferred income taxes and other assets	1,330	1,651
Non-current assets held for disposition	3	1,934
Total Assets	43,095	41,275
Current Liabilities:
Short-term borrowings	2,921	4,382
Trade accounts payable	1,012	1,064
Salaries, wages and commissions	649	776
Other accrued liabilities	3,380	2,943
Dividends payable	358	362
Income taxes payable	534	270
Current portion of long-term debt	51	55
Current liabilities held for disposition	301	680
Total Current Liabilities	9,206	10,532
Long-term debt	5,931	3,408
Post-employment Obligations, deferred income taxes and other long - term Liabilities	5,970	5,588
Non-current liabilities held for disposition		108
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: 2015: 1,698,124,396; 2014: 1,694,929,949	12,462	12,383
Common shares held in treasury, at cost - Shares: 2015: 209,367,078; 2014: 186,894,515	(9,721)	(8,678)
Earnings employed in the business	24,740	22,874
Accumulated other comprehensive income (loss)	(5,607)	(5,053)
Total Abbott Shareholders' Investment	21,874	21,526
Noncontrolling Interests in Subsidiaries	114	113
Total Shareholders' Investment	21,988	21,639
Total Liabilities and Shareholders' Investment	$ 43,095	$ 41,275

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Supplemental Financial Information

3 Months Ended

Mar. 31, 2015

Supplemental Financial Information

Supplemental Financial Information

Note 3 — Supplemental Financial Information

Shares of unvested restricted stock that contain non-forfeitable rights to dividends are treated as participating securities and are included in the computation of earnings per share under the two-class method.  Under the two-class method, net earnings are allocated between common shares and participating securities. Earnings from Continuing Operations allocated to common shares for the three months ended March 31, 2015 and 2014 were $526 million and $223 million, respectively.  Net earnings allocated to common shares for the three months ended March 31, 2015 and 2014 were $2,281 million and $373 million, respectively.

Other, net in Net cash from operating activities in the Condensed Consolidated Statement of Cash Flows for the first three months of 2015 and 2014 includes the effects of contributions to defined benefit plans of $529 million and $312 million, respectively, and to the post-employment medical and dental benefit plans of $24 million in 2015 and $40 million in 2014. The first quarter of 2015 includes the non-cash impact of approximately $1.1 billion of tax expense associated with the gain on the sale of businesses and the first quarter of 2014 includes approximately $110 million of tax benefits from the resolution of various tax positions pertaining to prior years.

The components of short-term and long-term investments as of March 31, 2015 and December 31, 2014 are as follows:

Short-term Investments	March 31,		December 31,
(in millions)	2015		2014
Equity securities	$	6,034	$	—
Other, primarily bank time deposits and U.S. treasury bills	589		397
Total	$	6,623	$	397

Long-term Investments
(in millions)
Equity securities	$	227	$	212
Other	17		17
Total	$	244	$	229

The short-term investments in equity securities reflect the 110 million of ordinary shares of Mylan N.V. received in the sale of the developed markets branded generics pharmaceuticals business.

In March 2015, Abbott issued $2.5 billion of long-term debt consisting of $750 million of 2.00% Senior Notes due March 15, 2020; $750 million of 2.55% Senior Notes due March 15, 2022; and $1.0 billion of 2.95% Senior Notes due March 15, 2025.  Abbott also entered into interest rate swap contracts totaling $2.5 billion.  These contracts have the effect of changing Abbott’s obligation from a fixed interest rate to a variable interest rate obligation.

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Incentive Stock Programs (Tables)

3 Months Ended

Mar. 31, 2015

Incentive Stock Programs

Stock options outstanding and exercisable

	Outstanding		Exercisable
Number of shares	38,316,478		28,926,890
Weighted average remaining life (years)	4.9		3.5
Weighted average exercise price	$	30.66	$	26.76
Aggregate intrinsic value (in millions)	$	605	$	567

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Restructuring Plans (Details) (USD $) In Millions, unless otherwise specified	3 Months Ended
	Mar. 31, 2015
Restructuring Plan 2014
Restructuring costs
Restructuring charges	$ 13
Restructuring Plan 2015
Restructuring costs
Restructuring charges	8
Restructuring Plan 2015 | Cost of products sold
Restructuring costs
Restructuring charges	1
Restructuring Plan 2015 | Selling, general and administrative expense
Restructuring costs
Restructuring charges	$ 7

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Segment Information

3 Months Ended

Mar. 31, 2015

Segment Information

Segment Information

Note 13 — Segment Information

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

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

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

Diagnostic Products — Worldwide sales of diagnostic systems and tests for blood banks, hospitals, commercial laboratories and alternate-care testing sites.  For segment reporting purposes, the Core Laboratories Diagnostics, Molecular Diagnostics, Point of Care and Ibis diagnostic divisions are aggregated and reported as the Diagnostic Products segment.

Vascular Products — Worldwide sales of coronary, endovascular, structural heart, vessel closure and other medical device products. For segment reporting purposes, the Vascular and Electrophysiology Products divisions are aggregated and reported as the Vascular Products segment.

Non-reportable segments include the Diabetes Care and Medical Optics segments.

On February 27, 2015, Abbott completed the sale of its developed markets branded generics pharmaceuticals business to Mylan N.V.  This business was previously included in the Established Pharmaceutical Products segment for the first quarter of 2014; therefore, the 2014 segment information below has been adjusted to reflect the classification of the developed markets branded generics pharmaceuticals business as part of discontinued operations in the Condensed Consolidated Statement of Earnings.

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.

	Three Months Ended March 31
	Net Sales to External Customers				Operating Earnings
(in millions)	2015		2014		2015			2014
Established Pharmaceutical Products	$	897	$	681	$	167		$	121
Nutritional Products	1,669		1,631		350			283
Diagnostic Products	1,093		1,117		276			222
Vascular Products	698		738		284			221
Total Reportable Segments	4,357		4,167		1,077			847
Other	540		588
Net Sales	$	4,897	$	4,755
Corporate functions and benefit plans costs					(117		)	(58		)
Non-reportable segments					55			66
Net interest expense					(16		)	(20		)
Share-based compensation (a)					(148		)	(116		)
Amortization of intangible assets					(156		)	(127		)
Other, net (b)					(42		)	(251		)
Earnings from continuing operations before taxes					$	653		$	341

(a) Approximately 40 to 45 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) The decrease from 2014 to 2015 primarily reflects lower charges for cost reduction initiatives.