Revenue

6 Months Ended

Jun. 30, 2021

Revenue

Revenue

Note 3 — Revenue

Abbott’s revenues are derived primarily from the sale of a broad line of health care products under short-term receivable arrangements.  Abbott has four reportable segments: Established Pharmaceutical Products, Diagnostic Products, Nutritional Products, and Medical Devices.

Note 3 — Revenue (Continued)

The following tables provide detail by sales category:

	Three Months Ended June 30, 2021						Three Months Ended June 30, 2020
(in millions)	U.S.		Int’l		Total		U.S.		Int’l		Total
Established Pharmaceutical Products —
Key Emerging Markets	$	—	$	915	$	915	$	—	$	764	$	764
Other		—		265		265		—		249		249
Total		—		1,180		1,180		—		1,013		1,013
Nutritionals —
Pediatric Nutritionals		528		565		1,093		484		540		1,024
Adult Nutritionals		345		670		1,015		324		535		859
Total		873		1,235		2,108		808		1,075		1,883
Diagnostics —
Core Laboratory		283		1,023		1,306		289		698		987
Molecular		94		196		290		144		215		359
Point of Care		97		40		137		79		39		118
Rapid Diagnostics		681		833		1,514		345		185		530
Total		1,155		2,092		3,247		857		1,137		1,994
Medical Devices —
Rhythm Management		269		298		567		185		216		401
Electrophysiology		209		278		487		120		179		299
Heart Failure		168		59		227		115		43		158
Vascular		246		451		697		168		313		481
Structural Heart		191		231		422		91		132		223
Neuromodulation		166		44		210		85		21		106
Diabetes Care		289		767		1,056		202		553		755
Total		1,538		2,128		3,666		966		1,457		2,423
Other		15		7		22		7		8		15
Total	$	3,581	$	6,642	$	10,223	$	2,638	$	4,690	$	7,328

Note 3 — Revenue (Continued)

	Six Months Ended June 30, 2021						Six Months Ended June 30, 2020
(in millions)	U.S.		Int’l		Total		U.S.		Int’l		Total
Established Pharmaceutical Products —
Key Emerging Markets	$	—	$	1,736	$	1,736	$	—	$	1,577	$	1,577
Other		—		514		514		—		480		480
Total		—		2,250		2,250		—		2,057		2,057
Nutritionals —
Pediatric Nutritionals		1,036		1,123		2,159		1,002		1,111		2,113
Adult Nutritionals		673		1,312		1,985		618		1,056		1,674
Total		1,709		2,435		4,144		1,620		2,167		3,787
Diagnostics —
Core Laboratory		554		1,934		2,488		556		1,420		1,976
Molecular		269		468		737		209		289		498
Point of Care		189		77		266		182		74		256
Rapid Diagnostics		1,784		1,986		3,770		713		377		1,090
Total		2,796		4,465		7,261		1,660		2,160		3,820
Medical Devices —
Rhythm Management		510		576		1,086		413		462		875
Electrophysiology		388		530		918		284		403		687
Heart Failure		313		108		421		267		94		361
Vascular		465		867		1,332		398		708		1,106
Structural Heart		360		439		799		227		314		541
Neuromodulation		311		83		394		222		61		283
Diabetes Care		542		1,494		2,036		388		1,119		1,507
Total		2,889		4,097		6,986		2,199		3,161		5,360
Other		25		13		38		15		15		30
Total	$	7,419	$	13,260	$	20,679	$	5,494	$	9,560	$	15,054

Remaining Performance Obligations

As of June 30, 2021, the estimated revenue expected to be recognized in the future related to performance obligations that are unsatisfied (or partially unsatisfied) was approximately $3.9 billion in the Diagnostics segment and approximately $414 million in the Medical Devices segment.  Abbott expects to recognize revenue on approximately 60 percent of these remaining performance obligations over the next 24 months, approximately 16 percent over the subsequent 12 months and the remainder thereafter.

These performance obligations primarily reflect the future sale of reagents/consumables in contracts with minimum purchase obligations, extended warranty or service obligations related to previously sold equipment, and remote monitoring services related to previously implanted devices.  Abbott has applied the practical expedient described in Accounting Standards Codification (ASC) 606-10-50-14 and has not included remaining performance obligations related to contracts with original expected durations of one year or less in the amounts above.

Note 3 — Revenue (Continued)

Other Contract Assets and Liabilities

Abbott discloses Trade receivables separately in the Condensed Consolidated Balance Sheet at the net amount expected to be collected.  Contract assets primarily relate to Abbott’s conditional right to consideration for work completed but not billed at the reporting date.  Contract assets at the beginning and end of the period, as well as the changes in the balance, were not significant.

Contract liabilities primarily relate to payments received from customers in advance of performance under the contract.  Abbott’s contract liabilities arise primarily in the Medical Devices reportable segment when payment is received upfront for various multi-period extended service arrangements.  

Changes in the contract liabilities during the period are as follows:

(in millions)
Contract Liabilities:
Balance at December 31, 2020	$	405
Unearned revenue from cash received during the period		280
Revenue recognized related to contract liability balance		(279)
Balance at June 30, 2021	$	406