10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 10-Q

(Mark One)

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

For the quarterly period ended September 30, 2021

OR

◻ TRANSITION 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

Securities Registered Pursuant to Section 12(b) of the Act:

Title of Each Class	Trading Symbol(s)	Name of Each Exchange on Which Registered
Common Shares, Without Par Value	ABT	New York Stock Exchange Chicago Stock Exchange, Inc.

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 ⌧ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted 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 such files). Yes ☒ No ☐

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

Large Accelerated Filer ☒	Accelerated Filer ☐
Non-Accelerated Filer ☐	Smaller reporting company ☐
	Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

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

As of September 30, 2021, Abbott Laboratories had 1,768,286,969 common shares without par value outstanding.

Abbott Laboratories

Table of Contents

Part I - Financial Information
	Page
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 Shareholders’ Investment	6
Condensed Consolidated Statement of Cash Flows	8
Notes to the Condensed Consolidated Financial Statements	9
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations	24
Item 4. Controls and Procedures	30
Part II - Other Information
Item 1. Legal Proceedings	30
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds	30
Item 6. Exhibits	31
Signature	32

2

Abbott Laboratories and Subsidiaries

Condensed Consolidated Statement of Earnings

(Unaudited)

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

	Three Months Ended				Nine Months Ended
	September 30				September 30
	2021		2020		2021		2020
Net sales	$	10,928	$	8,853	$	31,607	$	23,907
Cost of products sold, excluding amortization of intangible assets		4,423		3,966		13,771		10,510
Amortization of intangible assets		520		510		1,533		1,624
Research and development		672		580		1,980		1,722
Selling, general and administrative		2,767		2,302		8,276		7,126
Total operating cost and expenses		8,382		7,358		25,560		20,982
Operating earnings		2,546		1,495		6,047		2,925
Interest expense		133		137		402		410
Interest (income)		(10)		(10)		(32)		(37)
Net foreign exchange (gain) loss		4		(7)		7		(3)
Other (income) expense, net		(74)		(46)		(214)		(25)
Earnings from continuing operations before taxes		2,493		1,421		5,884		2,580
Tax expense (benefit) on earnings from continuing operations		393		189		802		267
Earnings from continuing operations		2,100		1,232		5,082		2,313
Earnings from discontinued operations, net of tax		—		—		—		20
Net Earnings	$	2,100	$	1,232	$	5,082	$	2,333
Basic Earnings Per Common Share —
Continuing operations	$	1.18	$	0.69	$	2.85	$	1.30
Discontinued operations		—		—		—		0.01
Net earnings	$	1.18	$	0.69	$	2.85	$	1.31
Diluted Earnings Per Common Share —
Continuing operations	$	1.17	$	0.69	$	2.83	$	1.29
Discontinued operations		—		—		—		0.01
Net earnings	$	1.17	$	0.69	$	2.83	$	1.30
Average Number of Common Shares Outstanding Used for Basic Earnings Per Common Share		1,774,516		1,774,475		1,776,870		1,772,166
Dilutive Common Stock Options		14,483		13,378		14,407		12,381
Average Number of Common Shares Outstanding Plus Dilutive Common Stock Options		1,788,999		1,787,853		1,791,277		1,784,547
Outstanding Common Stock Options Having No Dilutive Effect		2,740		—		2,694		—

The accompanying notes to the 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				Nine Months Ended
	September 30				September 30
	2021		2020		2021		2020
Net Earnings	$	2,100	$	1,232	$	5,082	$	2,333
Foreign currency translation gain (loss) adjustments		(391)		112		(762)		(677)
Net actuarial gains (losses) and amortization of net actuarial losses and prior service costs and credits, net of taxes of $18 and $54 in 2021 and $14 and $42 in 2020		78		28		211		122
Net gains (losses) for derivative instruments designated as cash flow hedges and other, net of taxes of $50 and $98 in 2021 and $(43) and $(24) in 2020		139		(104)		257		(24)
Other comprehensive income (loss)		(174)		36		(294)		(579)
Comprehensive Income	$	1,926	$	1,268	$	4,788	$	1,754
					September 30,		December 31,
					2021		2020
Supplemental Accumulated Other Comprehensive Income (Loss) Information, net of tax:
Cumulative foreign currency translation (loss) adjustments					$	(5,621)	$	(4,859)
Net actuarial (losses) and prior service (costs) and credits						(3,660)		(3,871)
Cumulative gains (losses) on derivative instruments designated as cash flow hedges and other						41		(216)
Accumulated other comprehensive income (loss)					$	(9,240)	$	(8,946)

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

4

Abbott Laboratories and Subsidiaries

Condensed Consolidated Balance Sheet

(Unaudited)

(dollars in millions)

	September 30,		December 31,
	2021		2020
Assets
Current Assets:
Cash and cash equivalents	$	9,302	$	6,838
Short-term investments		390		310
Trade receivables, less allowances of $507 in 2021 and $460 in 2020		6,405		6,414
Inventories:
Finished products		3,048		3,030
Work in process		710		712
Materials		1,503		1,270
Total inventories		5,261		5,012
Prepaid expenses and other receivables		2,134		1,867
Total Current Assets		23,492		20,441
Investments		812		821
Property and equipment, at cost		19,182		18,793
Less: accumulated depreciation and amortization		10,351		9,764
Net property and equipment		8,831		9,029
Intangible assets, net of amortization		13,312		14,784
Goodwill		23,299		23,744
Deferred income taxes and other assets		4,049		3,729
	$	73,795	$	72,548

Liabilities and Shareholders’ Investment
Current Liabilities:
Short-term borrowings	$	197	$	213
Trade accounts payable		4,017		3,946
Salaries, wages and commissions		1,470		1,416
Other accrued liabilities		5,264		5,165
Dividends payable		797		798
Income taxes payable		368		362
Current portion of long-term debt		754		7
Total Current Liabilities		12,867		11,907
Long-term debt		17,446		18,527
Post-employment obligations, deferred income taxes and other long-term liabilities		8,844		9,111
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: 2021: 1,983,103,854; 2020: 1,981,156,896		24,285		24,145
Common shares held in treasury, at cost — Shares: 2021: 214,816,885; 2020: 209,926,622		(10,999)		(10,042)
Earnings employed in the business		30,376		27,627
Accumulated other comprehensive income (loss)		(9,240)		(8,946)
Total Abbott Shareholders’ Investment		34,422		32,784
Noncontrolling Interests in Subsidiaries		216		219
Total Shareholders’ Investment		34,638		33,003
	$	73,795	$	72,548

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

5

Abbott Laboratories and Subsidiaries

Condensed Consolidated Statement of Shareholders’ Investment

(Unaudited)

(in millions except shares and per share data)

	Three Months Ended September 30
	2021		2020
Common Shares:
Balance at June 30
Shares: 2021: 1,982,553,488; 2020: 1,979,594,379	$	24,153	$	23,893
Issued under incentive stock programs
Shares: 2021: 550,366; 2020: 1,172,844		26		48
Share-based compensation		113		101
Issuance of restricted stock awards		(7)		(5)
Balance at September 30
Shares: 2021: 1,983,103,854; 2020: 1,980,767,223	$	24,285	$	24,037
Common Shares Held in Treasury:
Balance at June 30
Shares: 2021: 209,736,139; 2020: 209,064,380	$	(10,340)	$	(9,904)
Issued under incentive stock programs
Shares: 2021: 545,860; 2020: 664,727		26		32
Purchased
Shares: 2021: 5,626,606; 2020: 5,989		(685)		(1)
Balance at September 30
Shares: 2021: 214,816,885; 2020: 208,405,642	$	(10,999)	$	(9,873)
Earnings Employed in the Business:
Balance at June 30	$	29,053	$	25,669
Net earnings		2,100		1,232
Cash dividends declared on common shares (per share — 2021: $0.45; 2020: $0.36)		(799)		(641)
Effect of common and treasury share transactions		22		6
Balance at September 30	$	30,376	$	26,266
Accumulated Other Comprehensive Income (Loss):
Balance at June 30	$	(9,066)	$	(9,080)
Other comprehensive income (loss)		(174)		36
Balance at September 30	$	(9,240)	$	(9,044)
Noncontrolling Interests in Subsidiaries:
Balance at June 30	$	229	$	220
Noncontrolling Interests’ share of income, business combinations, net of distributions and share repurchases		(13)		(11)
Balance at September 30	$	216	$	209

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

6

Abbott Laboratories and Subsidiaries

Condensed Consolidated Statement of Shareholders’ Investment

(Unaudited)

(in millions except shares and per share data)

	Nine Months Ended September 30
	2021		2020
Common Shares:
Balance at January 1
Shares: 2021: 1,981,156,896; 2020: 1,976,855,085	$	24,145	$	23,853
Issued under incentive stock programs
Shares: 2021: 1,946,958; 2020: 3,912,138		91		167
Share-based compensation		536		451
Issuance of restricted stock awards		(487)		(434)
Balance at September 30
Shares: 2021: 1,983,103,854; 2020: 1,980,767,223	$	24,285	$	24,037
Common Shares Held in Treasury:
Balance at January 1
Shares: 2021: 209,926,622; 2020: 214,351,838	$	(10,042)	$	(10,147)
Issued under incentive stock programs
Shares: 2021: 5,524,291; 2020: 6,211,326		265		295
Purchased
Shares: 2021: 10,414,554; 2020: 265,130		(1,222)		(21)
Balance at September 30
Shares: 2021: 214,816,885; 2020: 208,405,642	$	(10,999)	$	(9,873)
Earnings Employed in the Business:
Balance at January 1	$	27,627	$	25,847
Impact of adoption of new accounting standard		—		(5)
Net earnings		5,082		2,333
Cash dividends declared on common shares (per share — 2021: $1.35; 2020: $1.08)		(2,403)		(1,922)
Effect of common and treasury share transactions		70		13
Balance at September 30	$	30,376	$	26,266
Accumulated Other Comprehensive Income (Loss):
Balance at January 1	$	(8,946)	$	(8,465)
Other comprehensive income (loss)		(294)		(579)
Balance at September 30	$	(9,240)	$	(9,044)
Noncontrolling Interests in Subsidiaries:
Balance at January 1	$	219	$	213
Noncontrolling Interests’ share of income, business combinations, net of distributions and share repurchases		(3)		(4)
Balance at September 30	$	216	$	209

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

7

Abbott Laboratories and Subsidiaries

Condensed Consolidated Statement of Cash Flows

(Unaudited)

(dollars in millions)

	Nine Months Ended September 30
	2021		2020
Cash Flow From (Used in) Operating Activities:
Net earnings	$	5,082	$	2,333
Adjustments to reconcile net earnings to net cash from operating activities —
Depreciation		1,122		837
Amortization of intangible assets		1,533		1,624
Share-based compensation		534		448
Trade receivables		(194)		(343)
Inventories		(471)		(838)
Other, net		(140)		42
Net Cash From Operating Activities		7,466		4,103
Cash Flow From (Used in) Investing Activities:
Acquisitions of property and equipment		(1,271)		(1,498)
Acquisitions of businesses and technologies, net of cash acquired		(187)		(32)
Proceeds from business dispositions		134		48
Sales (purchases) of other investment securities, net		(27)		(15)
Other		14		13
Net Cash (Used in) Investing Activities		(1,337)		(1,484)
Cash Flow From (Used in) Financing Activities:
Net borrowings (repayments) of short-term debt and other		(7)		3
Proceeds from issuance of long-term debt		—		1,280
Repayments of long-term debt		(45)		(1,332)
Purchases of common shares		(1,325)		(242)
Proceeds from stock options exercised		173		229
Dividends paid		(2,404)		(1,919)
Other		—		(11)
Net Cash (Used in) Financing Activities		(3,608)		(1,992)
Effect of exchange rate changes on cash and cash equivalents		(57)		(7)
Net Increase in Cash and Cash Equivalents		2,464		620
Cash and Cash Equivalents, Beginning of Year		6,838		3,860
Cash and Cash Equivalents, End of Period	$	9,302	$	4,480

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

8

Abbott Laboratories and Subsidiaries

Notes to the Condensed Consolidated Financial Statements

September 30, 2021

(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, 2020. The condensed consolidated financial statements include the accounts of the parent company and subsidiaries, after elimination of intercompany transactions.

Note 2 — New Accounting Standards

Recently Adopted Accounting Standards

In December 2019, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes, which among other things, eliminates certain exceptions in the current rules regarding the approach for intraperiod tax allocations and the methodology for calculating income taxes in an interim period, and clarifies the accounting for transactions that result in a step-up in the tax basis of goodwill. Abbott adopted the standard on January 1, 2021. The new standard did not have an impact on its condensed consolidated financial statements.

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.

9

Abbott Laboratories and Subsidiaries

Notes to the Condensed Consolidated Financial Statements

September 30, 2021

(Unaudited)

Note 3 — Revenue (Continued)

The following tables provide detail by sales category:

	Three Months Ended September 30, 2021						Three Months Ended September 30, 2020
(in millions)	U.S.		Int’l		Total		U.S.		Int’l		Total
Established Pharmaceutical Products —
Key Emerging Markets	$	—	$	936	$	936	$	—	$	799	$	799
Other		—		329		329		—		300		300
Total		—		1,265		1,265		—		1,099		1,099
Nutritionals —
Pediatric Nutritionals		586		514		1,100		488		518		1,006
Adult Nutritionals		333		675		1,008		330		588		918
Total		919		1,189		2,108		818		1,106		1,924
Diagnostics —
Core Laboratory		291		1,001		1,292		284		892		1,176
Molecular		162		183		345		220		238		458
Point of Care		100		35		135		96		35		131
Rapid Diagnostics		1,394		746		2,140		533		342		875
Total		1,947		1,965		3,912		1,133		1,507		2,640
Medical Devices —
Rhythm Management		266		305		571		242		265		507
Electrophysiology		192		293		485		192		249		441
Heart Failure		170		59		229		144		46		190
Vascular		219		425		644		230		400		630
Structural Heart		177		215		392		159		194		353
Neuromodulation		149		41		190		170		36		206
Diabetes Care		323		798		1,121		226		617		843
Total		1,496		2,136		3,632		1,363		1,807		3,170
Other		6		5		11		15		5		20
Total	$	4,368	$	6,560	$	10,928	$	3,329	$	5,524	$	8,853

10

Abbott Laboratories and Subsidiaries

Notes to the Condensed Consolidated Financial Statements

September 30, 2021

(Unaudited)

Note 3 — Revenue (Continued)

	Nine Months Ended September 30, 2021						Nine Months Ended September 30, 2020
(in millions)	U.S.		Int’l		Total		U.S.		Int’l		Total
Established Pharmaceutical Products —
Key Emerging Markets	$	—	$	2,672	$	2,672	$	—	$	2,376	$	2,376
Other		—		843		843		—		780		780
Total		—		3,515		3,515		—		3,156		3,156
Nutritionals —
Pediatric Nutritionals		1,622		1,637		3,259		1,490		1,629		3,119
Adult Nutritionals		1,006		1,987		2,993		948		1,644		2,592
Total		2,628		3,624		6,252		2,438		3,273		5,711
Diagnostics —
Core Laboratory		845		2,935		3,780		840		2,312		3,152
Molecular		431		651		1,082		429		527		956
Point of Care		289		112		401		278		109		387
Rapid Diagnostics		3,178		2,732		5,910		1,246		719		1,965
Total		4,743		6,430		11,173		2,793		3,667		6,460
Medical Devices —
Rhythm Management		776		881		1,657		655		727		1,382
Electrophysiology		580		823		1,403		476		652		1,128
Heart Failure		483		167		650		411		140		551
Vascular		684		1,292		1,976		628		1,108		1,736
Structural Heart		537		654		1,191		386		508		894
Neuromodulation		460		124		584		392		97		489
Diabetes Care		865		2,292		3,157		614		1,736		2,350
Total		4,385		6,233		10,618		3,562		4,968		8,530
Other		31		18		49		30		20		50
Total	$	11,787	$	19,820	$	31,607	$	8,823	$	15,084	$	23,907

Remaining Performance Obligations

As of September 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 $445 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.

11

Abbott Laboratories and Subsidiaries

Notes to the Condensed Consolidated Financial Statements

September 30, 2021

(Unaudited)

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		416
Revenue recognized related to contract liability balance		(409)
Balance at September 30, 2021	$	412

Note 4 — Supplemental Financial Information

Shares of unvested restricted stock that contain non-forfeitable rights to dividends are treated as participating securities and are included in the computation of earnings per share under the two-class method. Under the two-class method, net earnings are allocated between common shares and participating securities. Earnings from Continuing Operations allocated to common shares for the three months ended September 30, 2021 and 2020 were $2.092 billion and $1.226 billion, respectively, and for the nine months ended September 30, 2021 and 2020 were $5.061 billion and $2.302 billion, respectively. Net earnings allocated to common shares for the three months ended September 30, 2021 and 2020 were $2.092 billion and $1.226 billion, respectively, and for the nine months ended September 30, 2021 and 2020 were $5.061 billion and $2.322 billion, respectively.

Earnings from discontinued operations, net of tax, in the first nine months of 2020 include the recognition of $20 million of tax benefits as a result of the resolution of various tax positions related to the previous sale of a business that was reported as a discontinued operation.

Other, net in Net cash from operating activities in the Condensed Consolidated Statement of Cash Flows for the first nine months of 2021 includes $366 million of pension contributions and the payment of cash taxes of approximately $990 million. The first nine months of 2020 includes $350 million of pension contributions and the payment of cash taxes of approximately $700 million.

The following summarizes the activity for the first nine months of 2021 related to the allowance for doubtful accounts as of September 30, 2021:

(in millions)
Allowance for Doubtful Accounts:
Balance at December 31, 2020	$	288
Provisions/charges to income		41
Amounts charged off and other deductions		(18)
Balance at September 30, 2021	$	311

12

Abbott Laboratories and Subsidiaries

Notes to the Condensed Consolidated Financial Statements

September 30, 2021

(Unaudited)

Note 4 — Supplemental Financial Information (Continued)

The allowance for doubtful accounts reflects the current estimate of credit losses expected to be incurred over the life of the accounts receivable. Abbott considers various factors in establishing, monitoring, and adjusting its allowance for doubtful accounts, including the aging of the accounts and aging trends, the historical level of charge-offs, and specific exposures related to particular customers. Abbott also monitors other risk factors and forward-looking information, such as country risk, when determining credit limits for customers and establishing adequate allowances.

The components of long-term investments as of September 30, 2021 and December 31, 2020 are as follows:

	September 30,		December 31,
(in millions)	2021		2020
Long-term Investments:
Equity securities	$	758	$	776
Other		54		45
Total	$	812	$	821

The decrease in Abbott’s long-term investments as of September 30, 2021 versus the balance as of December 31, 2020 primarily relates to the sale of an equity method investment.

Abbott’s equity securities as of September 30, 2021, include $382 million of investments in mutual funds that are held in a rabbi trust and were acquired as part of the St. Jude Medical, Inc. (St. Jude Medical) business acquisition. These investments, which are specifically designated as available for the purpose of paying benefits under a deferred compensation plan, are not available for general corporate purposes and are subject to creditor claims in the event of insolvency.

Abbott also holds certain investments as of September 30, 2021 with a carrying value of $269 million that are accounted for under the equity method of accounting and other equity investments with a carrying value of approximately $91 million that do not have a readily determinable fair value. An approximately $60 million impairment of an investment was recorded in the second quarter of 2020 for which Abbott had previously recorded an unrealized gain of approximately $50 million in 2018.

In September 2021, Abbott acquired 100 percent of Walk Vascular, LLC (Walk Vascular), a commercial-stage medical device company with a minimally invasive thrombectomy system designed to remove peripheral blood clots. Walk Vascular’s peripheral thrombectomy system will be incorporated into Abbott’s existing endovascular portfolio. The purchase price, the allocation of acquired assets and liabilities, and the revenue and net income contributed by Walk Vascular since the date of acquisition are not material to Abbott’s condensed consolidated financial statements.

13

Abbott Laboratories and Subsidiaries

Notes to the Condensed Consolidated Financial Statements

September 30, 2021

(Unaudited)

Note 5 — Changes in Accumulated Other Comprehensive Income (Loss)

The changes in accumulated other comprehensive income (loss), net of income taxes, are as follows:

	Three Months Ended September 30
									Cumulative Gains (Losses)
	Cumulative Foreign				Net Actuarial (Losses) and				on Derivative Instruments
	Currency Translation				Prior Service (Costs) and				Designated as Cash Flow
	Adjustments				Credits				Hedges
(in millions)	2021		2020		2021		2020		2021		2020
Balance at June 30	$	(5,230)	$	(5,713)	$	(3,738)	$	(3,446)	$	(98)	$	79
Other comprehensive income (loss) before reclassifications		(391)		112		16		(21)		70		(74)
Amounts reclassified from accumulated other comprehensive income		—		—		62		49		69		(30)
Net current period comprehensive income (loss)		(391)		112		78		28		139		(104)
Balance at September 30	$	(5,621)	$	(5,601)	$	(3,660)	$	(3,418)	$	41	$	(25)

	Nine Months Ended September 30
									Cumulative Gains (Losses)
	Cumulative Foreign				Net Actuarial (Losses) and				on Derivative Instruments
	Currency Translation				Prior Service (Costs) and				Designated as Cash Flow
	Adjustments				Credits				Hedges
(in millions)	2021		2020		2021		2020		2021		2020
Balance at January 1	$	(4,859)	$	(4,924)	$	(3,871)	$	(3,540)	$	(216)	$	(1)
Other comprehensive income (loss) before reclassifications		(762)		(677)		26		(23)		138		35
Amounts reclassified from accumulated other comprehensive income		—		—		185		145		119		(59)
Net current period comprehensive income (loss)		(762)		(677)		211		122		257		(24)
Balance at September 30	$	(5,621)	$	(5,601)	$	(3,660)	$	(3,418)	$	41	$	(25)

Reclassified amounts for cash flow hedges are recorded as Cost of products sold. Net actuarial losses and prior service cost are included as a component of net periodic benefit costs; see Note 12 for additional details.

14

Abbott Laboratories and Subsidiaries

Notes to the Condensed Consolidated Financial Statements

September 30, 2021

(Unaudited)

Note 6 — Goodwill and Intangible Assets

The total amount of goodwill reported was $23.3 billion at September 30, 2021 and $23.7 billion at December 31, 2020. Foreign currency translation adjustments decreased goodwill by approximately $444 million in the first nine months of 2021. The amount of goodwill related to reportable segments at September 30, 2021 was $2.9 billion for the Established Pharmaceutical Products segment, $286 million for the Nutritional Products segment, $3.8 billion for the Diagnostic Products segment, and $16.4 billion for the Medical Devices segment. There was no reduction of goodwill relating to impairments in the first nine months of 2021.

Indefinite-lived intangible assets, which relate to in-process R&D (IPR&D) acquired in a business combination, were approximately $929 million as of September 30, 2021 and $1.2 billion at December 31, 2020. The decrease is due to IPR&D assets primarily related to the Medical Devices segment that became amortizable in 2021, partially offset by an increase of approximately $90 million related to a recent acquisition.

The gross amount of amortizable intangible assets, primarily product rights and technology was $27.8 billion as of September 30, 2021 and December 31, 2020, and accumulated amortization was $15.4 billion as of September 30, 2021 and $14.2 billion as of December 31, 2020. Amortizable intangible assets increased by approximately $130 million as a result of a recent acquisition and the additional assets are being amortized over 9 years. Foreign currency translation adjustments decreased intangible assets by $152 million in the first nine months of 2021. In the first nine months of 2021, asset impairments related to the Established Pharmaceutical Products segment decreased intangible assets by $13 million. The impairments were recorded in the Cost of products sold, excluding amortization of intangible assets line of Abbott’s Condensed Consolidated Statement of Earnings. Abbott’s estimated annual amortization expense for intangible assets is approximately $2.0 billion in 2021, $2.1 billion in 2022, $2.0 billion in 2023, $1.9 billion in 2024 and $1.8 billion in 2025.

Note 7 — Restructuring Plans

On May 27, 2021, Abbott management approved a restructuring plan related to its Diagnostic Products segment to align its manufacturing network for COVID-19 diagnostic tests with changes in the second quarter in projected testing demand driven by several factors, including significant reductions in cases in the U.S. and other major developed countries, the accelerated rollout of COVID-19 vaccines globally and the U.S. health authority’s updated guidance on testing for fully vaccinated individuals. In the second quarter of 2021, Abbott recorded charges of $499 million under this plan in Cost of products sold. The charge recognized in the second quarter included fixed asset write-downs of $80 million, inventory-related charges of $248 million, and other exit costs, which included contract cancellations and employee-related costs of $171 million.

In the third quarter of 2021, as the Delta variant of COVID-19 spread and the number of new COVID-19 cases increased significantly particularly in the U.S., demand for rapid COVID-19 tests increased significantly. As a result, in the third quarter Abbott sold approximately $120 million of inventory that was previously estimated to have no net realizable value under the second quarter restructuring action. In addition, the estimate of other exit costs was reduced by a net $19 million as Abbott fulfilled its purchase obligations under certain contracts for which a liability was recorded in the second quarter or Abbott settled with the counterparty in the third quarter.

15

Abbott Laboratories and Subsidiaries

Notes to the Condensed Consolidated Financial Statements

September 30, 2021

(Unaudited)

Note 7 — Restructuring Plans (Continued)

The following summarizes the activity for the first nine months of 2021 related to this restructuring action and the status of the related accruals as of September 30, 2021:

	Inventory-
	Related		Fixed Asset		Other Exit
(in millions)	Charges		Write-Downs		Costs		Total
Restructuring charges recorded in 2021	$	248	$	80	$	152	$	480
Payments		—		—		(54)		(54)
Other non-cash		(248)		(80)		—		(328)
Accrued balance at September 30, 2021	$	—	$	—	$	98	$	98

From 2017 to 2021, Abbott management approved restructuring plans as part of the integration of the acquisitions of St. Jude Medical into the Medical Devices segment, and Alere Inc. (Alere) into the Diagnostic Products segment, in order to leverage economies of scale and reduce costs. As of December 31, 2020, the accrued balance associated with these actions was $25 million. In the first nine months of 2021, charges of $5 million were recognized, of which $1 million is recorded in Cost of products sold and $4 million as Selling, general and administrative expense. As of September 30, 2021, the accrued liabilities remaining in the Condensed Consolidated Balance Sheet related to these actions total $10 million and primarily represent severance obligations.

From 2017 to 2021, Abbott management approved plans to streamline operations in order to reduce costs and improve efficiencies in various Abbott businesses including the nutritional, established pharmaceuticals and vascular businesses. In the first nine months of 2021, charges of $17 million were recognized, of which $1 million is recorded in Cost of products sold and $16 million as Selling, general and administrative expense. The following summarizes the activity for the first nine months of 2021 related to these restructuring actions and the status of the related accrual as of September 30, 2021:

(in millions)
Accrued balance at December 31, 2020	$	70
Restructuring charges recorded in 2021		17
Payments and other adjustments		(30)
Accrued balance at September 30, 2021	$	57

Note 8 — Incentive Stock Programs

In the first nine months of 2021, Abbott granted 2,865,115 stock options, 497,373 restricted stock awards and 4,670,845 restricted stock units under its incentive stock program. At September 30, 2021, approximately 101 million shares were reserved for future grants. Information regarding the number of options outstanding and exercisable at September 30, 2021 is as follows:

	Outstanding		Exercisable
Number of shares		29,594,797		22,674,416
Weighted average remaining life (years)		5.8		4.9
Weighted average exercise price	$	63.08	$	51.79
Aggregate intrinsic value (in millions)	$	1,645	$	1,504

The total unrecognized share-based compensation cost at September 30, 2021 amounted to approximately $552 million which is expected to be recognized over the next three years.

16

Abbott Laboratories and Subsidiaries

Notes to the Condensed Consolidated Financial Statements

September 30, 2021

(Unaudited)

Note 9 — Debt and Lines of Credit

On September 28, 2020, Abbott repaid the €1.140 billion outstanding principal amount of its 0.00% Notes due 2020 upon maturity. The repayment equated to approximately $1.3 billion.

On June 24, 2020, Abbott completed the issuance of $1.3 billion aggregate principal amount of senior notes, consisting of $650 million of its 1.15% Notes due 2028 and $650 million of its 1.40% Notes due 2030.

Note 10 — 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 primarily for anticipated intercompany purchases by those subsidiaries whose functional currencies are not the U.S. dollar. These contracts, with gross notional amounts totaling $8.7 billion at September 30, 2021 and $8.1 billion at December 31, 2020 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 September 30, 2021 will be included in Cost of products sold at the time the products are sold, generally through the next twelve to eighteen months.

Abbott enters into foreign currency forward exchange contracts to manage currency exposures for foreign currency denominated third-party trade payables and receivables, and for intercompany loans and trade accounts payable where the receivable or payable is denominated in a currency other than the functional currency of the entity. For intercompany loans, the contracts require Abbott to sell or buy foreign currencies, primarily European currencies, in exchange for primarily U.S. dollars and other European currencies. For intercompany and trade payables and receivables, the currency exposures are primarily the U.S. dollar and European currencies. At September 30, 2021 and December 31, 2020, Abbott held the gross notional amounts of $11.4 billion and $11.0 billion, respectively, of such foreign currency forward exchange contracts.

Abbott has designated a yen-denominated, 5-year term loan of approximately $536 million and $577 million as of September 30, 2021 and December 31, 2020, respectively, as a hedge of the net investment in certain foreign subsidiaries. The change in the value of the debt, which is due to changes in foreign exchange rates, is recorded in Accumulated other comprehensive income (loss), net of tax.

Abbott is a party to interest rate hedge contracts totaling approximately $2.9 billion at September 30, 2021 and December 31, 2020 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.

17

Abbott Laboratories and Subsidiaries

Notes to the Condensed Consolidated Financial Statements

September 30, 2021

(Unaudited)

Note 10 — Financial Instruments, Derivatives and Fair Value Measures (Continued)

The following table summarizes the amounts and location of certain derivative financial instruments as of September 30, 2021 and December 31, 2020:

	Fair Value - Assets					Fair Value - Liabilities
	Sept. 30,		Dec. 31,			Sept. 30,		Dec. 31,
(in millions)	2021		2020		Balance Sheet Caption	2021		2020		Balance Sheet Caption
Interest rate swaps designated as fair value hedges	$	129	$	210	Deferred income taxes and other assets	$	—	$	—	Post-employment obligations, deferred income taxes and other long-term liabilities
Foreign currency forward exchange contracts:
Hedging instruments		193		30	Prepaid expenses and other receivables		69		433	Other accrued liabilities
Others not designated as hedges		45		60	Prepaid expenses and other receivables		68		65	Other accrued liabilities
Debt designated as a hedge of net investment in a foreign subsidiary		—		—	n/a		536		577	Long-term debt
	$	367	$	300		$	673	$	1,075

The following table summarizes the activity for foreign currency forward exchange contracts designated as cash flow hedges and certain other derivative financial instruments, as well as the amounts and location of income (expense) and gain (loss) reclassified into income for the three and nine months ended September 30, 2021 and 2020.

	Gain (loss) Recognized in Other								Income (expense) and Gain (loss)
	Comprehensive Income (loss)								Reclassified into Income
	Three Months				Nine Months				Three Months				Nine Months
	Ended Sept. 30				Ended Sept. 30				Ended Sept. 30				Ended Sept. 30
(in millions)	2021		2020		2021		2020		2021		2020		2021		2020		Income Statement Caption
Foreign currency forward exchange contracts designated as cash flow hedges	$	96	$	(103)	$	142	$	35	$	(92)	$	48	$	(207)	$	90	Cost of products sold
Debt designated as a hedge of net investment in a foreign subsidiary		4		(10)		41		(20)		—		—		—		—	n/a
Interest rate swaps designated as fair value hedges		n/a		n/a		n/a		n/a		(14)		(11)		(81)		184	Interest expense

18

Abbott Laboratories and Subsidiaries

Notes to the Condensed Consolidated Financial Statements

September 30, 2021

(Unaudited)

Note 10 — Financial Instruments, Derivatives and Fair Value Measures (Continued)

Losses of $18 million and $100 million were recognized in the three months ended September 30, 2021 and 2020, respectively, related to foreign currency forward exchange contracts not designated as a hedge. Gains of $15 million and losses of $198 million were recognized in the nine months ended September 30, 2021 and 2020, respectively, related to foreign currency forward exchange contracts not designated as a hedge. These amounts are reported in the Condensed Consolidated Statement of Earnings on the Net foreign exchange (gain) loss line.

The carrying values and fair values of certain financial instruments as of September 30, 2021 and December 31, 2020 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 non-performance by these counterparties.

	September 30, 2021				December 31, 2020
	Carrying		Fair		Carrying		Fair
(in millions)	Value		Value		Value		Value
Long-term Investment Securities:
Equity securities	$	758	$	758	$	776	$	776
Other		54		54		45		45
Total Long-term Debt		(18,200)		(21,330)		(18,534)		(22,809)
Foreign Currency Forward Exchange Contracts:
Receivable position		238		238		90		90
(Payable) position		(137)		(137)		(498)		(498)
Interest Rate Hedge Contracts:
Receivable position		129		129		210		210

The fair value of the debt was determined based on significant other observable inputs, including current interest rates.

19

Abbott Laboratories and Subsidiaries

Notes to the Condensed Consolidated Financial Statements

September 30, 2021

(Unaudited)

Note 10 — Financial Instruments, Derivatives and Fair Value Measures (Continued)

The following table summarizes the bases used to measure certain assets and liabilities at fair value on a recurring basis in the balance sheet:

			Basis of Fair Value Measurement
			Quoted		Significant
			Prices in		Other		Significant
	Outstanding		Active		Observable		Unobservable
(in millions)	Balances		Markets		Inputs		Inputs
September 30, 2021:
Equity securities	$	398	$	398	$	—	$	—
Interest rate swap derivative financial instruments		129		—		129		—
Foreign currency forward exchange contracts		238		—		238		—
Total Assets	$	765	$	398	$	367	$	—
Fair value of hedged long-term debt	$	2,967	$	—	$	2,967	$	—
Foreign currency forward exchange contracts		137		—		137		—
Contingent consideration related to business combinations		129		—		—		129
Total Liabilities	$	3,233	$	—	$	3,104	$	129
December 31, 2020:
Equity securities	$	386	$	386	$	—	$	—
Interest rate swap derivative financial instruments		210		—		210		—
Foreign currency forward exchange contracts		90		—		90		—
Total Assets	$	686	$	386	$	300	$	—
Fair value of hedged long-term debt	$	3,049	$	—	$	3,049	$	—
Foreign currency forward exchange contracts		498		—		498		—
Contingent consideration related to business combinations		68		—		—		68
Total Liabilities	$	3,615	$	—	$	3,547	$	68

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 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 using significant other observable inputs.

The increase in contingent consideration during the year was a result of a recent acquisition. The fair value of the contingent consideration was determined based on independent appraisals at the time of acquisition, adjusted for the time value of money and other changes in fair value.

20

Abbott Laboratories and Subsidiaries

Notes to the Condensed Consolidated Financial Statements

September 30, 2021

(Unaudited)

Note 11 — Litigation and Environmental Matters

Abbott has been identified as a potentially responsible party for investigation and cleanup costs at a number of locations in the United States and Puerto Rico under federal and state remediation laws and is investigating potential contamination at a number of company-owned locations. Abbott has recorded an estimated cleanup cost for each site for which management believes Abbott has a probable loss exposure. No individual site cleanup exposure is expected to exceed $4 million, and the aggregate cleanup exposure is not expected to exceed $10 million.

Abbott is involved in various claims and legal proceedings, and Abbott estimates the range of possible loss for its legal proceedings and environmental exposures to be from approximately $25 million to $45 million. The recorded accrual balance at September 30, 2021 for these proceedings and exposures was approximately $35 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 12 — Post-Employment Benefits

Retirement plans consist of defined benefit, defined contribution, and medical and dental plans. Net periodic benefit costs, other than service costs, are recognized in the Other (income) expense, net line of the Condensed Consolidated Statement of Earnings. Net cost recognized in continuing operations for the three and nine months ended September 30 for Abbott’s major defined benefit plans and post-employment medical and dental benefit plans is as follows:

	Defined Benefit Plans								Medical and Dental Plans
	Three Months				Nine Months				Three Months				Nine Months
	Ended Sept. 30				Ended Sept. 30				Ended Sept. 30				Ended Sept. 30
(in millions)	2021		2020		2021		2020		2021		2020		2021		2020
Service cost - benefits earned during the period	$	98	$	85	$	294	$	251	$	14	$	12	$	42	$	35
Interest cost on projected benefit obligations		62		75		186		224		8		11		25		32
Expected return on plan assets		(211)		(193)		(633)		(576)		(6)		(7)		(20)		(21)
Net amortization of:
Actuarial loss, net		79		64		238		191		7		5		21		15
Prior service cost (credit)		—		—		1		1		(7)		(7)		(21)		(21)
Net cost - continuing operations	$	28	$	31	$	86	$	91	$	16	$	14	$	47	$	40

Abbott funds its domestic defined benefit plans according to Internal Revenue Service funding limitations. International pension plans are funded according to similar regulations. In the first nine months of 2021 and 2020, $366 million and $350 million, respectively, were contributed to defined benefit plans and $26 million and $11 million, respectively, were contributed to the post-employment medical and dental plans.

21

Abbott Laboratories and Subsidiaries

Notes to the Condensed Consolidated Financial Statements

September 30, 2021

(Unaudited)

Note 13 — 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 nine months of 2021 and 2020, taxes on earnings from continuing operations include approximately $97 million and $87 million, respectively, in excess tax benefits associated with share-based compensation. In the first nine months of 2020, taxes on earnings from continuing operations also include approximately $81 million in tax benefits related to the settlement of the former St. Jude Medical consolidated group’s 2014 through 2016 federal income tax returns in the U.S. Earnings from discontinued operations, net of tax, in the first nine months of 2020 reflect the recognition of $20 million of net tax benefits primarily as a result of the resolution of various tax positions related to prior years.

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 approximately $80 million, including cash adjustments, within the next twelve months as a result of concluding various domestic and international tax matters.

Note 14 — 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, physician offices and alternate-care testing sites. For segment reporting purposes, the Core Laboratory Diagnostics, Rapid Diagnostics, Molecular Diagnostics and Point of Care Diagnostics divisions are aggregated and reported as the Diagnostic Products segment.

Medical Devices — Worldwide sales of rhythm management, electrophysiology, heart failure, vascular, structural heart, neuromodulation and diabetes care products. For segment reporting purposes, the Cardiac Rhythm Management, Electrophysiology and Heart Failure, Vascular, Structural Heart, Neuromodulation and Diabetes Care divisions are aggregated and reported as the Medical Devices segment.

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.

22

Abbott Laboratories and Subsidiaries

Notes to the Condensed Consolidated Financial Statements

September 30, 2021

(Unaudited)

Note 14 — Segment Information (Continued)

The following segment information has been prepared in accordance with the internal accounting policies of Abbott, as described above, and is not presented in accordance with generally accepted accounting principles applied to the consolidated financial statements.

	Net Sales to External Customers								Operating Earnings
	Three Months				Nine Months				Three Months				Nine Months
	Ended Sept. 30				Ended Sept. 30				Ended Sept. 30				Ended Sept. 30
(in millions)	2021		2020		2021		2020		2021		2020		2021		2020
Established Pharmaceutical Products	$	1,265	$	1,099	$	3,515	$	3,156	$	293	$	201	$	682	$	588
Nutritional Products		2,108		1,924		6,252		5,711		431		394		1,388		1,327
Diagnostic Products		3,912		2,640		11,173		6,460		1,652		875		4,429		1,802
Medical Devices		3,632		3,170		10,618		8,530		1,160		928		3,375		2,122
Total Reportable Segments		10,917		8,833		31,558		23,857		3,536		2,398		9,874		5,839
Other		11		20		49		50
Net sales	$	10,928	$	8,853	$	31,607	$	23,907
Corporate functions and benefit plan costs										(204)		(129)		(450)		(367)
Net interest expense										(123)		(127)		(370)		(373)
Share-based compensation (a)										(114)		(100)		(534)		(448)
Amortization of intangible assets										(520)		(510)		(1,533)		(1,624)
Other, net (b)										(82)		(111)		(1,103)		(447)
Earnings from continuing operations before taxes									$	2,493	$	1,421	$	5,884	$	2,580

(a) Approximately 50 percent of the annual net cost of share-based awards will typically be recognized in the first quarter due to the timing of the granting of share-based awards.

(b) Other, net for the three and nine months ended September 30, 2021 and 2020 includes integration costs associated with the acquisition of St. Jude Medical and Alere, and restructuring charges. 2021 restructuring charges include Abbott’s restructuring plan for its COVID-19 test manufacturing network. Other, net for the nine months ended September 30, 2021 also includes costs related to certain litigation. Other, net for the three and nine months ended September 30, 2020 also includes costs related to asset impairments, partially offset by income from the settlement of litigation.

23

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

Financial Review - Results of Operations

Abbott’s revenues are derived primarily from the sale of a broad line of health care products under short-term receivable arrangements. Patent protection and licenses, technological and performance features, and inclusion of Abbott’s products under a contract most impact which products are sold; price controls, competition and rebates most impact the net selling prices of products; and foreign currency translation impacts the measurement of net sales and costs. Abbott’s primary products are medical devices, diagnostic testing products, nutritional products and branded generic pharmaceuticals.

The following table details sales by reportable segment for the three and nine months ended September 30. Percent changes are versus the prior year and are based on unrounded numbers.

	Net Sales to External Customers
	Three Months		Three Months
	Ended		Ended				Impact of		Total Change
	Sept. 30,		Sept. 30,		Total		Foreign		Excl. Foreign
(in millions)	2021		2020		Change		Exchange		Exchange
Established Pharmaceutical Products	$	1,265	$	1,099	15.1	%	(0.2)	%	15.3	%
Nutritional Products		2,108		1,924	9.6		0.7		8.9
Diagnostic Products		3,912		2,640	48.2		1.4		46.8
Medical Devices		3,632		3,170	14.6		1.5		13.1
Total Reportable Segments		10,917		8,833	23.6		1.1		22.5
Other		11		20	(51.4)		0.9		(52.3)
Net Sales	$	10,928	$	8,853	23.4		1.0		22.4
Total U.S.	$	4,368	$	3,329	31.2		—		31.2
Total International	$	6,560	$	5,524	18.7		1.7		17.0

	Net Sales to External Customers
	Nine Months		Nine Months
	Ended		Ended				Impact of		Total Change
	Sept. 30,		Sept. 30,		Total		Foreign		Excl. Foreign
(in millions)	2021		2020		Change		Exchange		Exchange
Established Pharmaceutical Products	$	3,515	$	3,156	11.4	%	(0.6)	%	12.0	%
Nutritional Products		6,252		5,711	9.5		1.2		8.3
Diagnostic Products		11,173		6,460	73.0		3.8		69.2
Medical Devices		10,618		8,530	24.5		3.8		20.7
Total Reportable Segments		31,558		23,857	32.3		2.6		29.7
Other		49		50	(1.3)		2.8		(4.1)
Net Sales	$	31,607	$	23,907	32.2		2.6		29.6
Total U.S.	$	11,787	$	8,823	33.6		—		33.6
Total International	$	19,820	$	15,084	31.4		4.1		27.3

Note: In order to compute results excluding the impact of exchange rates, current year U.S. dollar sales are multiplied or divided, as appropriate, by the current year average foreign exchange rates and then those amounts are multiplied or divided, as appropriate, by the prior year average foreign exchange rates.

24

The 22.4 percent increase in total net sales during the third quarter of 2021, excluding the impact of foreign exchange, reflected demand for Abbott’s tests to detect COVID-19 as well as other growth across Abbott’s reportable segments. During the third quarter of 2021, Abbott’s COVID-19 testing-related sales totaled approximately $1.9 billion led by combined sales of approximately $1.6 billion related to Abbott’s BinaxNOW^®, Panbio^®, and ID NOW^® rapid testing platforms. During the third quarter of 2020, COVID-19 testing-related sales totaled approximately $0.9 billion. Excluding the impact of COVID-19 testing-related sales, Abbott’s total net sales increased 13.2 percent. Excluding the impacts of COVID-19 testing-related sales and foreign exchange, Abbott’s total net sales increased 12.1 percent. Abbott’s net sales were favorably impacted by changes in foreign exchange rates in the third quarter as the relatively weaker U.S. dollar increased total international sales by 1.7 percent and total sales by 1.0 percent.

The 29.6 percent increase in total net sales during the first nine months of 2021, excluding the impact of foreign exchange, reflected demand for Abbott’s tests to detect COVID-19 as well as other growth across Abbott’s reportable segments. During the first nine months of 2021, Abbott’s COVID-19 testing-related sales totaled approximately $5.4 billion led by combined sales of approximately $4.5 billion related to Abbott’s BinaxNOW, Panbio, and ID NOW rapid testing platforms. During the first nine months of 2020, COVID-19 testing-related sales totaled approximately $1.5 billion. Excluding the impact of COVID-19 testing-related sales, Abbott’s total net sales increased 17.3 percent. Excluding the impacts of COVID-19 testing-related sales and foreign exchange, Abbott’s total net sales increased 14.9 percent. Abbott’s net sales were favorably impacted by changes in foreign exchange rates in the first nine months as the relatively weaker U.S. dollar increased total international sales by 4.1 percent and total sales by 2.6 percent.

Due to the unpredictability of the duration and impact of the current COVID-19 pandemic, the future extent to which the COVID-19 pandemic will have a material effect on Abbott’s business, financial condition or results of operations is uncertain.

The table below provides detail by sales category for the nine months ended September 30. Percent changes are versus the prior year and are based on unrounded numbers.

							Impact of		Total Change
	Sept. 30,		Sept. 30,		Total		Foreign		Excl. Foreign
(in millions)	2021		2020		Change		Exchange		Exchange
Established Pharmaceutical Products —
Key Emerging Markets	$	2,672	$	2,376	12.4	%	(1.8)	%	14.2	%
Other Emerging Markets		843		780	8.1		2.7		5.4
Nutritionals —
International Pediatric Nutritionals		1,637		1,629	0.5		2.2		(1.7)
U.S. Pediatric Nutritionals		1,622		1,490	8.9		—		8.9
International Adult Nutritionals		1,987		1,644	20.9		2.0		18.9
U.S. Adult Nutritionals		1,006		948	6.0		—		6.0
Diagnostics —
Core Laboratory		3,780		3,152	19.9		3.5		16.4
Molecular		1,082		956	13.2		3.3		9.9
Point of Care		401		387	3.6		1.0		2.6
Rapid Diagnostics		5,910		1,965	200.7		4.9		195.8
Medical Devices —
Rhythm Management		1,657		1,382	19.9		3.3		16.6
Electrophysiology		1,403		1,128	24.4		3.1		21.3
Heart Failure		650		551	17.8		1.6		16.2
Vascular		1,976		1,736	13.9		3.5		10.4
Structural Heart		1,191		894	33.2		3.7		29.5
Neuromodulation		584		489	19.6		1.5		18.1
Diabetes Care		3,157		2,350	34.3		5.6		28.7

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Key Emerging Markets for the Established Pharmaceutical Products business include India, Russia, Brazil and China, 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 14.2 percent compared to the first nine months of 2020 led by growth across several geographies, including India, China and Brazil. Other Emerging Markets, excluding the effect of foreign exchange, increased by 5.4 percent in the first nine months of 2021.

International Pediatric Nutritional sales, excluding the effect of foreign exchange, decreased 1.7 percent in the first nine months of 2021 versus the comparable 2020 period and the decrease reflects lower sales in China, the Middle East and Canada partially offset by higher volumes sold in various countries in Latin America and Europe. U.S. Pediatric Nutritional sales increased 8.9 percent primarily due to increased demand for Pedialyte^®, Abbott’s oral rehydration brand, and Similac^®, Abbott’s infant brand. International Adult Nutritional sales, excluding the effect of foreign exchange, increased 18.9 percent, and U.S. Adult Nutritional sales increased 6.0 percent, reflecting continued growth of the Ensure^® and Glucerna^® brands in several countries including the U.S.

The 69.2 percent increase in Diagnostic Products sales, excluding the impact of foreign exchange, was driven by demand for Abbott’s portfolio of COVID-19 tests as described above as well as growth in the base Core Laboratory and Molecular businesses. In Core Laboratory, sales increased 16.4 percent, excluding the effect of foreign exchange, due to the increased volume of routine diagnostic testing performed in hospitals and other laboratories, partially offset by lower sales of Abbott’s laboratory-based tests for the detection of the IgG and IgM antibodies, which determine if someone was previously infected with the COVID-19 virus. In March 2021, Abbott received an Emergency Use Authorization (EUA) in the U.S. for its AdviseDX SARS-CoV-2 IgG II test for the semi-quantitative detection of IgG antibodies to COVID-19 on its ARCHITECT^® and Alinity^® i platforms. In the first nine months of 2021 and 2020, Core Laboratory IgG and IgM antibody testing-related sales on Abbott’s ARCHITECT and Alinity i platforms were $159 million and $212 million, respectively. In the first nine months of 2021, Core Laboratory sales increased 23.1 percent, excluding COVID-19 testing-related sales, and increased 19.3 percent, excluding the impact of foreign exchange and COVID-19 testing-related sales.

The 9.9 percent increase in Molecular Diagnostics sales, excluding the effect of foreign exchange, was driven by growth in the base business from the continued roll-out of the Alinity^® m platform as well as higher demand in the first half of 2021 for Abbott’s laboratory-based molecular tests for COVID-19 on its m2000^® and Alinity m platforms. In the first nine months of 2021 and 2020, Molecular Diagnostics COVID-19 testing-related sales were $699 million and $664 million, respectively. In March 2021, Abbott received an EUA in the U.S. for its multiplex molecular test on its Alinity m system to detect COVID-19, influenza A, influenza B, and respiratory syncytial virus (RSV) in one test. In the first nine months of 2021, Molecular Diagnostics sales increased 31.3 percent, excluding COVID-19 testing-related sales, and increased 28.1 percent, excluding the impact of foreign exchange and COVID-19 testing-related sales.

In Rapid Diagnostics, sales increased 195.8 percent, excluding the effect of foreign exchange, due to the demand for Abbott’s COVID-19 tests on its rapid testing platforms, including the Panbio system, the ID NOW platform, and the BinaxNOW COVID-19 Ag Card test. In the first nine months of 2021 and 2020, Rapid Diagnostics COVID-19 testing-related sales were $4.5 billion and $0.65 billion, respectively. In January 2021, Abbott received CE Mark for two new uses of its Panbio rapid antigen test: asymptomatic testing and self-swabbing under the supervision of a healthcare worker. On March 31, 2021, Abbott announced that it had received an EUA in the U.S. for its over-the-counter, non-prescription BinaxNOW COVID-19 Ag Self Test for individuals with or without symptoms. In the first quarter of 2021, Abbott also received EUAs that allow the non-prescription use of the BinaxNOW COVID-19 Ag Card Home Test and the BinaxNOW COVID-19 Ag Card test for professional use for individuals with or without symptoms. In June 2021, Abbott announced that it had received CE Mark in Europe for its over-the-counter Panbio COVID-19 Antigen Self-Test for individuals with or without symptoms.

Excluding the effect of foreign exchange, total Medical Devices sales grew 20.7 percent driven by double-digit growth across all divisions, led by Diabetes Care, Structural Heart and Electrophysiology. Growth in Diabetes Care sales was driven by continued growth of FreeStyle Libre^®, Abbott’s continuous glucose monitoring system, internationally and in the U.S. FreeStyle Libre and Libre Sense^™ sales totaled $2.7 billion in the first nine months of 2021, which reflected a 37.2 percent increase, excluding the effect of foreign exchange, over the first nine months of 2020 when Libre sales totaled $1.9 billion. Libre Sense, which received CE Mark in Europe in the third quarter of 2020, is Abbott’s glucose sport biosensor specifically designed for athletes.

26

While procedure volumes across Abbott’s cardiovascular and neuromodulation businesses were negatively impacted early in 2021 by elevated COVID-19 case rates in certain countries, including the U.S., overall volumes improved over the course of the first nine months of 2021 across various businesses. The year-over-year increases in the various businesses reflect a recovery from the 2020 levels when the pandemic reduced procedure volumes as well as sales growth from pre-pandemic levels in Structural Heart, Electrophysiology, and Heart Failure, excluding the effect of foreign exchange. In January 2021, the U.S. Centers for Medicare & Medicaid Services expanded reimbursement coverage eligibility for MitraClip^®, Abbott’s market-leading device for the minimally invasive treatment of mitral regurgitation (MR), a leaky heart valve. The growth in Structural Heart during the first nine months of 2021 was broad-based across several areas of the business, including MitraClip and TriClip^®, the world’s first minimally invasive, clip-based device for repair of a leaky tricuspid heart valve which was launched in Europe in May 2020.

In the first nine months of 2021, various product approvals in the Medical Devices segment included:

● In May 2021, CE Mark in Europe for Navitor™, Abbott’s latest-generation transcatheter aortic valve implantation (TAVI) system for patients with severe aortic stenosis who are at high or extreme surgical risk,

● In August 2021, U.S. Food and Drug Administration (FDA) approval of the Amplatzer^® Amulet^® Left Atrial Appendage Occluder, which offers immediate closure of the left atrial appendage, an area in the heart where blood clots can form,

● In September 2021, FDA approval of the Portico^® with FlexNav^® TAVI system to treat people with symptomatic, severe aortic stenosis who are at high or extreme risk for open heart surgery, and

● In September 2021, FDA approval of the Amplatzer^™ Talisman^™ PFO Occlusion System to treat people with a patent foramen ovale – a small opening between the upper chambers of the heart – who are at risk of recurrent ischemic stroke.

The gross profit margin percentage was 54.8 percent for the third quarter of 2021 compared to 49.4 percent for the third quarter of 2020. The increase in the quarter reflects the effects of higher sales volume in various businesses, higher utilization at various manufacturing sites, a change in estimate to the restructuring actions recognized in the second quarter related to Abbott’s manufacturing network for COVID-19 diagnostic tests and the nonrecurrence of the 2020 impairment of an intangible asset. The gross profit margin percentage was 51.6 percent for the first nine months of 2021 compared to 49.2 percent for the first nine months of 2020. The increase primarily reflects the effects of higher sales volume, higher manufacturing utilization, and the nonrecurrence of the 2020 intangible asset impairment, partially offset by the impact of higher restructuring charges in the first nine months of 2021.

Research and development expenses increased $92 million, or 16.1 percent, in the third quarter of 2021 and increased $258 million, or 15.0 percent, in the first nine months of 2021 compared to the prior year. The increases in R&D expenses in the third quarter and first nine months of 2021 were primarily driven by higher spending on various projects to advance products in development.

Selling, general and administrative (SG&A) expenses for the third quarter of 2021 increased $465 million, or 20.2 percent, and increased $1.15 billion, or 16.1 percent, for the first nine months of 2021, due primarily to higher selling and marketing spending to drive growth across various businesses and the nonrecurrence of $100 million of income in 2020 from a litigation settlement. The increase in the first nine months of 2021 also includes charges related to certain litigation.

Restructuring Plans

On May 27, 2021, Abbott management approved a restructuring plan related to its Diagnostic Products segment to align its manufacturing network for COVID-19 diagnostic tests with changes in the second quarter in projected testing demand driven by several factors, including significant reductions in cases in the U.S. and other major developed countries, the accelerated rollout of COVID-19 vaccines globally and the U.S. health authority’s updated guidance on testing for fully vaccinated individuals. In the second quarter of 2021, Abbott recorded charges of $499 million under this plan in Cost of products sold. The charge recognized in the second quarter included fixed asset write-downs of $80 million, inventory-related charges of $248 million, and other exit costs, which included contract cancellations and employee-related costs of $171 million.

In the third quarter of 2021, as the Delta variant of COVID-19 spread and the number of new COVID-19 cases increased significantly particularly in the U.S., demand for rapid COVID-19 tests increased significantly. As a result, in the third quarter Abbott sold approximately $120 million of inventory that was previously estimated to have no net realizable value under the second quarter restructuring action. In addition, the estimate of other exit costs was reduced by a net $19 million as Abbott fulfilled its purchase obligations under certain contracts for which a liability was recorded in the second quarter or Abbott settled with the counterparty in the third quarter.

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Other (Income) Expense, net

Other income, net increased from $46 million of income in the third quarter of 2020 to $74 million of income in the third quarter of 2021 and from $25 million of income in the first nine months of 2020 to $214 million of income in the first nine months of 2021. The increase in the third quarter was primarily due to higher income in 2021 related to the non-service cost components of net pension and post-retirement medical benefit costs. The increase in the first nine months of 2021 was primarily due to a $100 million change related to the nonrecurrence of 2020 equity investment impairments, a gain on the sale of an equity method investment in 2021 and higher income in 2021 related to the non-service cost components of net pension and post-retirement medical benefit costs.

Interest Expense, net

Interest expense, net was virtually unchanged versus the prior year, decreasing $4 million in the third quarter of 2021 and decreasing $3 million in the first nine months of 2021 due to the reduction in interest expense driven by lower interest rates in 2021. The effect of higher cash and short-term investment balances mostly offset the impact of lower interest rates on interest income in the first nine months of 2021.

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 nine months of 2021 and 2020, taxes on earnings from continuing operations include approximately $97 million and $87 million, respectively, in excess tax benefits associated with share-based compensation. In the first nine months of 2020, taxes on earnings from continuing operations also include approximately $81 million in tax benefits related to the settlement of the former St. Jude Medical consolidated group’s 2014 through 2016 federal income tax returns in the U.S. Earnings from discontinued operations, net of tax, in the first nine months of 2020 reflect the recognition of $20 million of net tax benefits primarily as a result of the resolution of various tax positions related to prior years.

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 approximately $80 million, including cash adjustments, within the next twelve months as a result of concluding various domestic and international tax matters.

Liquidity and Capital Resources September 30, 2021 Compared with December 31, 2020

The increase in cash and cash equivalents from $6.8 billion at December 31, 2020 to $9.3 billion at September 30, 2021 primarily reflects the cash generated from operations in the first nine months of 2021, partially offset by the payment of dividends, capital expenditures and share repurchases. Working capital was $10.6 billion at September 30, 2021 and $8.5 billion at December 31, 2020. The increase in working capital in 2021 primarily reflects the increase in cash and cash equivalents partially offset by an increase in the current portion of long-term debt.

In the Condensed Consolidated Statement of Cash Flows, Net cash from operating activities for the first nine months of 2021 totaled $7.5 billion, an increase of $3.4 billion over the prior year primarily due to higher operating earnings and improved working capital management, partially offset by higher cash taxes paid. Cash taxes paid in 2021 totaled approximately $990 million versus $700 million in 2020. Other, net in Net cash from operating activities was a use of $140 million for the first nine months of 2021 and a source of $42 million for the first nine months of 2020. The year-over-year change in Other, net in Net cash from operating activities reflects the nonrecurrence of 2020 non-cash impairment charges related to intangible assets and equity investments.

In September 2019, the board of directors authorized the early redemption of up to $5 billion of outstanding long-term notes. As of September 30, 2021, $2.15 billion of the $5 billion authorization remains available.

At September 30, 2021, Abbott’s long-term debt rating was A+ by Standard & Poor’s Corporation and A2 by Moody’s Investors Service. Abbott expects to maintain an investment grade rating. Abbott has readily available financial resources, including lines of credit of $5.0 billion which expire in 2025.

28

In October 2019, the board of directors authorized the repurchase of up to $3 billion of Abbott’s common shares from time to time. The 2019 authorization was in addition to the approximately $100 million of the share repurchase program authorized in 2014 that remained unused as of December 31, 2020. In the first nine months of 2021, Abbott repurchased 10.1 million of its common shares for $1.187 billion which fully utilized the authorization remaining under the 2014 share repurchase program and a portion of the 2019 authorization. As of September 30, 2021, $1.910 billion remains available for repurchase under the 2019 share repurchase program.

On April 27, 2016, the board of directors authorized the issuance and sale for general corporate purposes of up to 75 million common shares that would result in proceeds of up to $3 billion. No shares have been issued under this authorization.

In each of the first three quarters of 2021, Abbott declared a quarterly dividend of $0.45 per share on its common shares, which represents an increase of 25 percent over the $0.36 per share dividend declared in each of the first three quarters of 2020.

Recently Adopted Accounting Standards

In December 2019, the Financial Accounting Standards Board issued Accounting Standards Update ASU 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes, which among other things, eliminates certain exceptions in the current rules regarding the approach for intraperiod tax allocations and the methodology for calculating income taxes in an interim period, and clarifies the accounting for transactions that result in a step-up in the tax basis of goodwill. Abbott adopted the standard on January 1, 2021. The new standard did not have an impact on its condensed consolidated financial statements.

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 2020 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 that any forward-looking statements made by Abbott are subject to risks and uncertainties that may cause actual results to differ materially from those indicated in the forward-looking statements. Economic, competitive, governmental, technological and other factors that may affect Abbott’s operations are discussed in Item 1A, “Risk Factors” in our Annual Report on Form 10-K for the year ended December 31, 2020, and are incorporated herein by reference. Abbott undertakes no obligation to release publicly any revisions to forward-looking statements as a result of subsequent events or developments, except as required by law.

29

PART I.     FINANCIAL INFORMATION

Item 4.      Controls and Procedures

(a) Evaluation of disclosure controls and procedures. The President and Chief Executive Officer, Robert B. Ford, and Chief Financial Officer, Robert E. Funck, Jr., 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 September 30, 2021, 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.

PART II.   OTHER INFORMATION

Item 1.       Legal Proceedings

Abbott is involved in various claims, legal proceedings and investigations as described in our Annual Report on Form 10-K for the year ended December 31, 2020.

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

(c) Issuer Purchases of Equity Securities

						(d) Maximum
						Number (or
					(c) Total Number	Approximate
					of Shares (or	Dollar Value) of
	(a) Total				Units) Purchased	Shares (or Units)
	Number of		(b) Average		as Part of	that May Yet Be
	Shares (or		Price Paid per		Publicly	Purchased Under
	Units)		Share (or		Announced Plans	the Plans or
Period	Purchased		Unit)		or Programs	Programs
July 1, 2021 – July 31, 2021	450,000	(1)  ​	$	120.849	450,000	$	2,540,924,508	(2)​
August 1, 2021 – August 31, 2021	2,175,000	(1)​		123.265	2,175,000		2,272,822,841	(2)​
September 1, 2021 – September 30, 2021	3,002,035	(1)​		120.814	3,000,000		1,910,394,012	(2)​
Total	5,627,035	(1)​	$	121.764	5,625,000	$	1,910,394,012	(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 – 0 in July, 0 in August, 2,035 in September; and

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 October 11, 2019, the board of directors authorized the repurchase of up to $3 billion of Abbott common shares, from time to time.

30

Item 6.    Exhibits

Exhibit No.	Exhibit
3.1	By-Laws of Abbott Laboratories, as amended and restated effective August 30, 2021, filed as Exhibit 3.1 to the Abbott Laboratories Current Report on Form 8-K filed on September 1, 2021.
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 and nine months ended September 30, 2021, formatted in Inline XBRL: (i) Condensed Consolidated Statement of Earnings; (ii) Condensed Consolidated Statement of Comprehensive Income; (iii) Condensed Consolidated Balance Sheet; (iv) Condensed Consolidated Statement of Shareholders’ Investment; (v) Condensed Consolidated Statement of Cash Flows; and (vi) Notes to the Condensed Consolidated Financial Statements.
104	Cover Page Interactive Data File (the cover page XBRL tags are embedded in the Inline XBRL document and included in Exhibit 101).

31

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/ Robert E. Funck, Jr.
	Robert E. Funck, Jr.
	Executive Vice President, Finance and Chief Financial Officer
	Date: November 3, 2021

32

EX-31.1

Exhibit 31.1

Certification of Chief Executive Officer

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

I, Robert B. Ford, 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: November 3, 2021	/s/ Robert B. Ford
	Robert B. Ford
	President 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, Robert E. Funck, Jr., 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: November 3, 2021	/s/ Robert E. Funck, Jr.
	Robert E. Funck, Jr.
	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 September 30, 2021 as filed with the Securities and Exchange Commission (the “Report”), I, Robert B. Ford, President 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/ Robert B. Ford

Robert B. Ford

President and Chief Executive Officer

November 3, 2021

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 September 30, 2021 as filed with the Securities and Exchange Commission (the “Report”), I, Robert E. Funck, Jr., 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/ Robert E. Funck, Jr.

Robert E. Funck, Jr.

Executive Vice President, Finance

and Chief Financial Officer

November 3, 2021

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

Document and Entity Information	9 Months Ended
	Sep. 30, 2021 shares
Document and Entity Information
Document Type	10-Q
Document Transition Report	false
Document Quarterly Report	true
Document Period End Date	Sep. 30, 2021
Entity File Number	1-2189
Entity Registrant Name	ABBOTT LABORATORIES
Entity Tax Identification Number	36-0698440
Entity Incorporation, State or Country Code	IL
Entity Address, State or Province	IL
Entity Address, Address Line One	100 Abbott Park Road
Entity Address, City or Town	Abbott Park
Entity Address, Postal Zip Code	60064-6400
City Area Code	224
Local Phone Number	667-6100
Title of 12(b) Security	Common Shares, Without Par Value
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding	1,768,286,969
Entity Central Index Key	0000001800
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2021
Document Fiscal Period Focus	Q3
Amendment Flag	false
New York Stock Exchange
Document and Entity Information
Security Exchange Name	NYSE
Trading Symbol	ABT
Chicago Stock Exchange
Document and Entity Information
Security Exchange Name	CHX

XML

Condensed Consolidated Statement of Earnings - USD ($) shares in Thousands, $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Condensed Consolidated Statement of Earnings
Net sales	$ 10,928	$ 8,853	$ 31,607	$ 23,907
Cost of products sold, excluding amortization of intangible assets	4,423	3,966	13,771	10,510
Amortization of intangible assets	520	510	1,533	1,624
Research and development	672	580	1,980	1,722
Selling, general and administrative	2,767	2,302	8,276	7,126
Total operating cost and expenses	8,382	7,358	25,560	20,982
Operating earnings	2,546	1,495	6,047	2,925
Interest expense	133	137	402	410
Interest (income)	(10)	(10)	(32)	(37)
Net foreign exchange (gain) loss	4	(7)	7	(3)
Other (income) expense, net	(74)	(46)	(214)	(25)
Earnings from continuing operations before taxes	2,493	1,421	5,884	2,580
Tax expense (benefit) on earnings from continuing operations	393	189	802	267
Earnings from continuing operations	2,100	1,232	5,082	2,313
Earnings from discontinued operations, net of tax				20
Net Earnings	$ 2,100	$ 1,232	$ 5,082	$ 2,333
Basic Earnings Per Common Share --
Continuing operations	$ 1.18	$ 0.69	$ 2.85	$ 1.30
Discontinued operations				0.01
Net earnings	1.18	0.69	2.85	1.31
Diluted Earnings Per Common Share --
Continuing operations	1.17	0.69	2.83	1.29
Discontinued operations				0.01
Net earnings	$ 1.17	$ 0.69	$ 2.83	$ 1.30
Average Number of Common Shares Outstanding Used for Basic Earnings Per Common Share	1,774,516	1,774,475	1,776,870	1,772,166
Dilutive Common Stock Options	14,483	13,378	14,407	12,381
Average Number of Common Shares Outstanding Plus Dilutive Common Stock Options	1,788,999	1,787,853	1,791,277	1,784,547
Outstanding Common Stock Options Having No Dilutive Effect	2,740		2,694

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Condensed Consolidated Statement of Comprehensive Income - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020	Dec. 31, 2020
Condensed Consolidated Statement of Comprehensive Income
Net Earnings	$ 2,100	$ 1,232	$ 5,082	$ 2,333
Foreign currency translation gain (loss) adjustments	(391)	112	(762)	(677)
Net actuarial gains (losses) and amortization of net actuarial losses and prior service costs and credits, net of taxes of $18 and $54 in 2021 and $14 and $42 in 2020	78	28	211	122
Net gains (losses) for derivative instruments designated as cash flow hedges and other, net of taxes of $50 and $98 in 2021 and $(43) and $(24) in 2020	139	(104)	257	(24)
Other comprehensive income (loss)	(174)	36	(294)	(579)
Comprehensive Income	1,926	$ 1,268	4,788	$ 1,754
Supplemental Accumulated Other Comprehensive Income (Loss) Information, net of tax:
Cumulative foreign currency translation (loss) adjustments	(5,621)		(5,621)		$ (4,859)
Net actuarial (losses) and prior service (costs) and credits	(3,660)		(3,660)		(3,871)
Cumulative gains (losses) on derivative instruments designated as cash flow hedges and other	41		41		(216)
Accumulated other comprehensive income (loss)	$ (9,240)		$ (9,240)		$ (8,946)

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Condensed Consolidated Statement of Comprehensive Income (Parenthetical) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Condensed Consolidated Statement of Comprehensive Income
Net actuarial gains (losses) and amortization of net actuarial losses and prior service costs and credits taxes	$ 18	$ 14	$ 54	$ 42
Net gains (losses) for derivative instruments designated as cash flow hedges taxes	$ 50	$ (43)	$ 98	$ (24)

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Condensed Consolidated Balance Sheet - USD ($) $ in Millions	Sep. 30, 2021	Dec. 31, 2020
Current Assets:
Cash and cash equivalents	$ 9,302	$ 6,838
Short-term investments	390	310
Trade receivables, less allowances of $507 in 2021 and $460 in 2020	6,405	6,414
Inventories:
Finished products	3,048	3,030
Work in process	710	712
Materials	1,503	1,270
Total inventories	5,261	5,012
Prepaid expenses and other receivables	2,134	1,867
Total Current Assets	23,492	20,441
Investments	812	821
Property and equipment, at cost	19,182	18,793
Less: accumulated depreciation and amortization	10,351	9,764
Net property and equipment	8,831	9,029
Intangible assets, net of amortization	13,312	14,784
Goodwill	23,299	23,744
Deferred income taxes and other assets	4,049	3,729
Total Assets	73,795	72,548
Current Liabilities:
Short-term borrowings	197	213
Trade accounts payable	4,017	3,946
Salaries, wages and commissions	1,470	1,416
Other accrued liabilities	5,264	5,165
Dividends payable	797	798
Income taxes payable	368	362
Current portion of long-term debt	754	7
Total Current Liabilities	12,867	11,907
Long-term debt	17,446	18,527
Post-employment obligations, deferred income taxes and other long-term liabilities	8,844	9,111
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: 2021: 1,983,103,854; 2020: 1,981,156,896	24,285	24,145
Common shares held in treasury, at cost - Shares: 2021: 214,816,885; 2020: 209,926,622	(10,999)	(10,042)
Earnings employed in the business	30,376	27,627
Accumulated other comprehensive income (loss)	(9,240)	(8,946)
Total Abbott Shareholders' Investment	34,422	32,784
Noncontrolling Interests in Subsidiaries	216	219
Total Shareholders' Investment	34,638	33,003
Total Liabilities and Shareholders' Investment	$ 73,795	$ 72,548

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Condensed Consolidated Balance Sheet (Parenthetical) - USD ($) $ in Millions	Sep. 30, 2021	Dec. 31, 2020
Condensed Consolidated Balance Sheet
Trade receivables, allowances (in dollars)	$ 507	$ 460
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	1,983,103,854	1,981,156,896
Common shares held in treasury, shares	214,816,885	209,926,622

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Condensed Consolidated Statement of Shareholders' Investment - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Increase (Decrease) in Shareholders' Investment
Balance at beginning of period			$ 33,003
Net Earnings	$ 2,100	$ 1,232	5,082	$ 2,333
Other comprehensive income (loss)	(174)	36	(294)	(579)
Balance at end of period	34,638		34,638
Common Shares:
Increase (Decrease) in Shareholders' Investment
Balance at beginning of period	24,153	23,893	24,145	23,853
Issued under incentive stock programs	26	48	91	167
Share-based compensation	113	101	536	451
Issuance of restricted stock awards	(7)	(5)	(487)	(434)
Balance at end of period	24,285	24,037	24,285	24,037
Common Shares Held in Treasury:
Increase (Decrease) in Shareholders' Investment
Balance at beginning of period	(10,340)	(9,904)	(10,042)	(10,147)
Issued under incentive stock programs	26	32	265	295
Purchased	(685)	(1)	(1,222)	(21)
Balance at end of period	(10,999)	(9,873)	(10,999)	(9,873)
Earnings Employed in the Business:
Increase (Decrease) in Shareholders' Investment
Balance at beginning of period	29,053	25,669	27,627	25,847
Net Earnings	2,100	1,232	5,082	2,333
Cash dividends declared on common shares	(799)	(641)	(2,403)	(1,922)
Effect of common and treasury share transactions	22	6	70	13
Balance at end of period	30,376	26,266	30,376	26,266
Earnings Employed in the Business: | Impact of adoption of new accounting standards
Increase (Decrease) in Shareholders' Investment
Balance at beginning of period				(5)
Accumulated Other Comprehensive Income (Loss):
Increase (Decrease) in Shareholders' Investment
Balance at beginning of period	(9,066)	(9,080)	(8,946)	(8,465)
Other comprehensive income (loss)	(174)	36	(294)	(579)
Balance at end of period	(9,240)	(9,044)	(9,240)	(9,044)
Noncontrolling Interests in Subsidiaries:
Increase (Decrease) in Shareholders' Investment
Balance at beginning of period	229	220	219	213
Noncontrolling Interests' share of income, business combinations, net of distributions and share repurchases	(13)	(11)	(3)	(4)
Balance at end of period	$ 216	$ 209	$ 216	$ 209

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Condensed Consolidated Statement of Shareholders' Investment (Parenthetical) - $ / shares	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Common Shares:
Increase (Decrease) in Shareholders' Investment
Balance at beginning of period (in shares)	1,982,553,488	1,979,594,379	1,981,156,896	1,976,855,085
Issued under incentive stock programs (in shares)	550,366	1,172,844	1,946,958	3,912,138
Balance at end of period (in shares)	1,983,103,854	1,980,767,223	1,983,103,854	1,980,767,223
Common Shares Held in Treasury:
Increase (Decrease) in Shareholders' Investment
Balance at beginning of period (in shares)	209,736,139	209,064,380	209,926,622	214,351,838
Issued under incentive stock programs (in shares)	545,860	664,727	5,524,291	6,211,326
Purchased (in shares)	5,626,606	5,989	10,414,554	265,130
Balance at end of period (in shares)	214,816,885	208,405,642	214,816,885	208,405,642
Earnings Employed in the Business:
Increase (Decrease) in Shareholders' Investment
Cash dividends declared per common share	$ 0.45	$ 0.36	$ 1.35	$ 1.08

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Condensed Consolidated Statement of Cash Flows - USD ($) $ in Millions	9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020
Cash Flow From (Used in) Operating Activities:
Net earnings	$ 5,082	$ 2,333
Adjustments to reconcile net earnings to net cash from operating activities -
Depreciation	1,122	837
Amortization of intangible assets	1,533	1,624
Share-based compensation	534	448
Trade receivables	(194)	(343)
Inventories	(471)	(838)
Other, net	(140)	42
Net Cash From Operating Activities	7,466	4,103
Cash Flow From (Used in) Investing Activities:
Acquisitions of property and equipment	(1,271)	(1,498)
Acquisitions of businesses and technologies, net of cash acquired	(187)	(32)
Proceeds from business dispositions	134	48
Sales (purchases) of other investment securities, net	(27)	(15)
Other	14	13
Net Cash (Used in) Investing Activities	(1,337)	(1,484)
Cash Flow From (Used in) Financing Activities:
Net borrowings (repayments) of short-term debt and other	(7)	3
Proceeds from issuance of long-term debt		1,280
Repayments of long-term debt	(45)	(1,332)
Purchases of common shares	(1,325)	(242)
Proceeds from stock options exercised	173	229
Dividends paid	(2,404)	(1,919)
Other		(11)
Net Cash (Used in) Financing Activities	(3,608)	(1,992)
Effect of exchange rate changes on cash and cash equivalents	(57)	(7)
Net Increase in Cash and Cash Equivalents	2,464	620
Cash and Cash Equivalents, Beginning of Year	6,838	3,860
Cash and Cash Equivalents, End of Period	$ 9,302	$ 4,480

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Basis of Presentation

9 Months Ended

Sep. 30, 2021

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, 2020. The condensed consolidated financial statements include the accounts of the parent company and subsidiaries, after elimination of intercompany transactions.

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New Accounting Standards

9 Months Ended

Sep. 30, 2021

New Accounting Standards

New Accounting Standards

Note 2 — New Accounting Standards

Recently Adopted Accounting Standards

In December 2019, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes, which among other things, eliminates certain exceptions in the current rules regarding the approach for intraperiod tax allocations and the methodology for calculating income taxes in an interim period, and clarifies the accounting for transactions that result in a step-up in the tax basis of goodwill. Abbott adopted the standard on January 1, 2021. The new standard did not have an impact on its condensed consolidated financial statements.

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Revenue

9 Months Ended

Sep. 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 September 30, 2021						Three Months Ended September 30, 2020
(in millions)	U.S.		Int’l		Total		U.S.		Int’l		Total
Established Pharmaceutical Products —
Key Emerging Markets	$	—	$	936	$	936	$	—	$	799	$	799
Other		—		329		329		—		300		300
Total		—		1,265		1,265		—		1,099		1,099
Nutritionals —
Pediatric Nutritionals		586		514		1,100		488		518		1,006
Adult Nutritionals		333		675		1,008		330		588		918
Total		919		1,189		2,108		818		1,106		1,924
Diagnostics —
Core Laboratory		291		1,001		1,292		284		892		1,176
Molecular		162		183		345		220		238		458
Point of Care		100		35		135		96		35		131
Rapid Diagnostics		1,394		746		2,140		533		342		875
Total		1,947		1,965		3,912		1,133		1,507		2,640
Medical Devices —
Rhythm Management		266		305		571		242		265		507
Electrophysiology		192		293		485		192		249		441
Heart Failure		170		59		229		144		46		190
Vascular		219		425		644		230		400		630
Structural Heart		177		215		392		159		194		353
Neuromodulation		149		41		190		170		36		206
Diabetes Care		323		798		1,121		226		617		843
Total		1,496		2,136		3,632		1,363		1,807		3,170
Other		6		5		11		15		5		20
Total	$	4,368	$	6,560	$	10,928	$	3,329	$	5,524	$	8,853

Note 3 — Revenue (Continued)

	Nine Months Ended September 30, 2021						Nine Months Ended September 30, 2020
(in millions)	U.S.		Int’l		Total		U.S.		Int’l		Total
Established Pharmaceutical Products —
Key Emerging Markets	$	—	$	2,672	$	2,672	$	—	$	2,376	$	2,376
Other		—		843		843		—		780		780
Total		—		3,515		3,515		—		3,156		3,156
Nutritionals —
Pediatric Nutritionals		1,622		1,637		3,259		1,490		1,629		3,119
Adult Nutritionals		1,006		1,987		2,993		948		1,644		2,592
Total		2,628		3,624		6,252		2,438		3,273		5,711
Diagnostics —
Core Laboratory		845		2,935		3,780		840		2,312		3,152
Molecular		431		651		1,082		429		527		956
Point of Care		289		112		401		278		109		387
Rapid Diagnostics		3,178		2,732		5,910		1,246		719		1,965
Total		4,743		6,430		11,173		2,793		3,667		6,460
Medical Devices —
Rhythm Management		776		881		1,657		655		727		1,382
Electrophysiology		580		823		1,403		476		652		1,128
Heart Failure		483		167		650		411		140		551
Vascular		684		1,292		1,976		628		1,108		1,736
Structural Heart		537		654		1,191		386		508		894
Neuromodulation		460		124		584		392		97		489
Diabetes Care		865		2,292		3,157		614		1,736		2,350
Total		4,385		6,233		10,618		3,562		4,968		8,530
Other		31		18		49		30		20		50
Total	$	11,787	$	19,820	$	31,607	$	8,823	$	15,084	$	23,907

Remaining Performance Obligations

As of September 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 $445 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		416
Revenue recognized related to contract liability balance		(409)
Balance at September 30, 2021	$	412

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Supplemental Financial Information

9 Months Ended

Sep. 30, 2021

Supplemental Financial Information

Supplemental Financial Information

Note 4 — Supplemental Financial Information

Shares of unvested restricted stock that contain non-forfeitable rights to dividends are treated as participating securities and are included in the computation of earnings per share under the two-class method. Under the two-class method, net earnings are allocated between common shares and participating securities. Earnings from Continuing Operations allocated to common shares for the three months ended September 30, 2021 and 2020 were $2.092 billion and $1.226 billion, respectively, and for the nine months ended September 30, 2021 and 2020 were $5.061 billion and $2.302 billion, respectively. Net earnings allocated to common shares for the three months ended September 30, 2021 and 2020 were $2.092 billion and $1.226 billion, respectively, and for the nine months ended September 30, 2021 and 2020 were $5.061 billion and $2.322 billion, respectively.

Earnings from discontinued operations, net of tax, in the first nine months of 2020 include the recognition of $20 million of tax benefits as a result of the resolution of various tax positions related to the previous sale of a business that was reported as a discontinued operation.

Other, net in Net cash from operating activities in the Condensed Consolidated Statement of Cash Flows for the first nine months of 2021 includes $366 million of pension contributions and the payment of cash taxes of approximately $990 million. The first nine months of 2020 includes $350 million of pension contributions and the payment of cash taxes of approximately $700 million.

The following summarizes the activity for the first nine months of 2021 related to the allowance for doubtful accounts as of September 30, 2021:

(in millions)
Allowance for Doubtful Accounts:
Balance at December 31, 2020	$	288
Provisions/charges to income		41
Amounts charged off and other deductions		(18)
Balance at September 30, 2021	$	311

Note 4 — Supplemental Financial Information (Continued)

The allowance for doubtful accounts reflects the current estimate of credit losses expected to be incurred over the life of the accounts receivable. Abbott considers various factors in establishing, monitoring, and adjusting its allowance for doubtful accounts, including the aging of the accounts and aging trends, the historical level of charge-offs, and specific exposures related to particular customers. Abbott also monitors other risk factors and forward-looking information, such as country risk, when determining credit limits for customers and establishing adequate allowances.

The components of long-term investments as of September 30, 2021 and December 31, 2020 are as follows:

	September 30,		December 31,
(in millions)	2021		2020
Long-term Investments:
Equity securities	$	758	$	776
Other		54		45
Total	$	812	$	821

The decrease in Abbott’s long-term investments as of September 30, 2021 versus the balance as of December 31, 2020 primarily relates to the sale of an equity method investment.

Abbott’s equity securities as of September 30, 2021, include $382 million of investments in mutual funds that are held in a rabbi trust and were acquired as part of the St. Jude Medical, Inc. (St. Jude Medical) business acquisition. These investments, which are specifically designated as available for the purpose of paying benefits under a deferred compensation plan, are not available for general corporate purposes and are subject to creditor claims in the event of insolvency.

Abbott also holds certain investments as of September 30, 2021 with a carrying value of $269 million that are accounted for under the equity method of accounting and other equity investments with a carrying value of approximately $91 million that do not have a readily determinable fair value. An approximately $60 million impairment of an investment was recorded in the second quarter of 2020 for which Abbott had previously recorded an unrealized gain of approximately $50 million in 2018.

In September 2021, Abbott acquired 100 percent of Walk Vascular, LLC (Walk Vascular), a commercial-stage medical device company with a minimally invasive thrombectomy system designed to remove peripheral blood clots. Walk Vascular’s peripheral thrombectomy system will be incorporated into Abbott’s existing endovascular portfolio. The purchase price, the allocation of acquired assets and liabilities, and the revenue and net income contributed by Walk Vascular since the date of acquisition are not material to Abbott’s condensed consolidated financial statements.

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Changes in Accumulated Other Comprehensive Income (Loss)

9 Months Ended

Sep. 30, 2021

Changes in Accumulated Other Comprehensive Income (Loss)

Changes in Accumulated Other Comprehensive Income (Loss)

Note 5 — Changes in Accumulated Other Comprehensive Income (Loss)

The changes in accumulated other comprehensive income (loss), net of income taxes, are as follows:

	Three Months Ended September 30
									Cumulative Gains (Losses)
	Cumulative Foreign				Net Actuarial (Losses) and				on Derivative Instruments
	Currency Translation				Prior Service (Costs) and				Designated as Cash Flow
	Adjustments				Credits				Hedges
(in millions)	2021		2020		2021		2020		2021		2020
Balance at June 30	$	(5,230)	$	(5,713)	$	(3,738)	$	(3,446)	$	(98)	$	79
Other comprehensive income (loss) before reclassifications		(391)		112		16		(21)		70		(74)
Amounts reclassified from accumulated other comprehensive income		—		—		62		49		69		(30)
Net current period comprehensive income (loss)		(391)		112		78		28		139		(104)
Balance at September 30	$	(5,621)	$	(5,601)	$	(3,660)	$	(3,418)	$	41	$	(25)

	Nine Months Ended September 30
									Cumulative Gains (Losses)
	Cumulative Foreign				Net Actuarial (Losses) and				on Derivative Instruments
	Currency Translation				Prior Service (Costs) and				Designated as Cash Flow
	Adjustments				Credits				Hedges
(in millions)	2021		2020		2021		2020		2021		2020
Balance at January 1	$	(4,859)	$	(4,924)	$	(3,871)	$	(3,540)	$	(216)	$	(1)
Other comprehensive income (loss) before reclassifications		(762)		(677)		26		(23)		138		35
Amounts reclassified from accumulated other comprehensive income		—		—		185		145		119		(59)
Net current period comprehensive income (loss)		(762)		(677)		211		122		257		(24)
Balance at September 30	$	(5,621)	$	(5,601)	$	(3,660)	$	(3,418)	$	41	$	(25)

Reclassified amounts for cash flow hedges are recorded as Cost of products sold. Net actuarial losses and prior service cost are included as a component of net periodic benefit costs; see Note 12 for additional details.

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Goodwill and Intangible Assets

9 Months Ended

Sep. 30, 2021

Goodwill and Intangible Assets

Goodwill and Intangible Assets

Note 6 — Goodwill and Intangible Assets

The total amount of goodwill reported was $23.3 billion at September 30, 2021 and $23.7 billion at December 31, 2020. Foreign currency translation adjustments decreased goodwill by approximately $444 million in the first nine months of 2021. The amount of goodwill related to reportable segments at September 30, 2021 was $2.9 billion for the Established Pharmaceutical Products segment, $286 million for the Nutritional Products segment, $3.8 billion for the Diagnostic Products segment, and $16.4 billion for the Medical Devices segment. There was no reduction of goodwill relating to impairments in the first nine months of 2021.

Indefinite-lived intangible assets, which relate to in-process R&D (IPR&D) acquired in a business combination, were approximately $929 million as of September 30, 2021 and $1.2 billion at December 31, 2020. The decrease is due to IPR&D assets primarily related to the Medical Devices segment that became amortizable in 2021, partially offset by an increase of approximately $90 million related to a recent acquisition.

The gross amount of amortizable intangible assets, primarily product rights and technology was $27.8 billion as of September 30, 2021 and December 31, 2020, and accumulated amortization was $15.4 billion as of September 30, 2021 and $14.2 billion as of December 31, 2020. Amortizable intangible assets increased by approximately $130 million as a result of a recent acquisition and the additional assets are being amortized over 9 years. Foreign currency translation adjustments decreased intangible assets by $152 million in the first nine months of 2021. In the first nine months of 2021, asset impairments related to the Established Pharmaceutical Products segment decreased intangible assets by $13 million. The impairments were recorded in the Cost of products sold, excluding amortization of intangible assets line of Abbott’s Condensed Consolidated Statement of Earnings. Abbott’s estimated annual amortization expense for intangible assets is approximately $2.0 billion in 2021, $2.1 billion in 2022, $2.0 billion in 2023, $1.9 billion in 2024 and $1.8 billion in 2025.

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Restructuring Plans

9 Months Ended

Sep. 30, 2021

Restructuring Plans

Restructuring Plans

Note 7 — Restructuring Plans

On May 27, 2021, Abbott management approved a restructuring plan related to its Diagnostic Products segment to align its manufacturing network for COVID-19 diagnostic tests with changes in the second quarter in projected testing demand driven by several factors, including significant reductions in cases in the U.S. and other major developed countries, the accelerated rollout of COVID-19 vaccines globally and the U.S. health authority’s updated guidance on testing for fully vaccinated individuals. In the second quarter of 2021, Abbott recorded charges of $499 million under this plan in Cost of products sold. The charge recognized in the second quarter included fixed asset write-downs of $80 million, inventory-related charges of $248 million, and other exit costs, which included contract cancellations and employee-related costs of $171 million.

In the third quarter of 2021, as the Delta variant of COVID-19 spread and the number of new COVID-19 cases increased significantly particularly in the U.S., demand for rapid COVID-19 tests increased significantly. As a result, in the third quarter Abbott sold approximately $120 million of inventory that was previously estimated to have no net realizable value under the second quarter restructuring action. In addition, the estimate of other exit costs was reduced by a net $19 million as Abbott fulfilled its purchase obligations under certain contracts for which a liability was recorded in the second quarter or Abbott settled with the counterparty in the third quarter.

Note 7 — Restructuring Plans (Continued)

The following summarizes the activity for the first nine months of 2021 related to this restructuring action and the status of the related accruals as of September 30, 2021:

	Inventory-
	Related		Fixed Asset		Other Exit
(in millions)	Charges		Write-Downs		Costs		Total
Restructuring charges recorded in 2021	$	248	$	80	$	152	$	480
Payments		—		—		(54)		(54)
Other non-cash		(248)		(80)		—		(328)
Accrued balance at September 30, 2021	$	—	$	—	$	98	$	98

From 2017 to 2021, Abbott management approved restructuring plans as part of the integration of the acquisitions of St. Jude Medical into the Medical Devices segment, and Alere Inc. (Alere) into the Diagnostic Products segment, in order to leverage economies of scale and reduce costs. As of December 31, 2020, the accrued balance associated with these actions was $25 million. In the first nine months of 2021, charges of $5 million were recognized, of which $1 million is recorded in Cost of products sold and $4 million as Selling, general and administrative expense. As of September 30, 2021, the accrued liabilities remaining in the Condensed Consolidated Balance Sheet related to these actions total $10 million and primarily represent severance obligations.

From 2017 to 2021, Abbott management approved plans to streamline operations in order to reduce costs and improve efficiencies in various Abbott businesses including the nutritional, established pharmaceuticals and vascular businesses. In the first nine months of 2021, charges of $17 million were recognized, of which $1 million is recorded in Cost of products sold and $16 million as Selling, general and administrative expense. The following summarizes the activity for the first nine months of 2021 related to these restructuring actions and the status of the related accrual as of September 30, 2021:

(in millions)
Accrued balance at December 31, 2020	$	70
Restructuring charges recorded in 2021		17
Payments and other adjustments		(30)
Accrued balance at September 30, 2021	$	57

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Incentive Stock Programs

9 Months Ended

Sep. 30, 2021

Incentive Stock Programs

Incentive Stock Programs

Note 8 — Incentive Stock Programs

In the first nine months of 2021, Abbott granted 2,865,115 stock options, 497,373 restricted stock awards and 4,670,845 restricted stock units under its incentive stock program. At September 30, 2021, approximately 101 million shares were reserved for future grants. Information regarding the number of options outstanding and exercisable at September 30, 2021 is as follows:

	Outstanding		Exercisable
Number of shares		29,594,797		22,674,416
Weighted average remaining life (years)		5.8		4.9
Weighted average exercise price	$	63.08	$	51.79
Aggregate intrinsic value (in millions)	$	1,645	$	1,504

The total unrecognized share-based compensation cost at September 30, 2021 amounted to approximately $552 million which is expected to be recognized over the next three years.

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Debt and Lines of Credit

9 Months Ended

Sep. 30, 2021

Debt and Lines of Credit

Debt and Lines of Credit

Note 9 — Debt and Lines of Credit

On September 28, 2020, Abbott repaid the €1.140 billion outstanding principal amount of its 0.00% Notes due 2020 upon maturity. The repayment equated to approximately $1.3 billion.

On June 24, 2020, Abbott completed the issuance of $1.3 billion aggregate principal amount of senior notes, consisting of $650 million of its 1.15% Notes due 2028 and $650 million of its 1.40% Notes due 2030.

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Financial Instruments, Derivatives and Fair Value Measures

9 Months Ended

Sep. 30, 2021

Financial Instruments, Derivatives and Fair Value Measures

Financial Instruments, Derivatives and Fair Value Measures

Note 10 — 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 primarily for anticipated intercompany purchases by those subsidiaries whose functional currencies are not the U.S. dollar. These contracts, with gross notional amounts totaling $8.7 billion at September 30, 2021 and $8.1 billion at December 31, 2020 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 September 30, 2021 will be included in Cost of products sold at the time the products are sold, generally through the next twelve to eighteen months.

Abbott enters into foreign currency forward exchange contracts to manage currency exposures for foreign currency denominated third-party trade payables and receivables, and for intercompany loans and trade accounts payable where the receivable or payable is denominated in a currency other than the functional currency of the entity. For intercompany loans, the contracts require Abbott to sell or buy foreign currencies, primarily European currencies, in exchange for primarily U.S. dollars and other European currencies. For intercompany and trade payables and receivables, the currency exposures are primarily the U.S. dollar and European currencies. At September 30, 2021 and December 31, 2020, Abbott held the gross notional amounts of $11.4 billion and $11.0 billion, respectively, of such foreign currency forward exchange contracts.

Abbott has designated a yen-denominated, 5-year term loan of approximately $536 million and $577 million as of September 30, 2021 and December 31, 2020, respectively, as a hedge of the net investment in certain foreign subsidiaries. The change in the value of the debt, which is due to changes in foreign exchange rates, is recorded in Accumulated other comprehensive income (loss), net of tax.

Abbott is a party to interest rate hedge contracts totaling approximately $2.9 billion at September 30, 2021 and December 31, 2020 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.

Note 10 — Financial Instruments, Derivatives and Fair Value Measures (Continued)

The following table summarizes the amounts and location of certain derivative financial instruments as of September 30, 2021 and December 31, 2020:

	Fair Value - Assets					Fair Value - Liabilities
	Sept. 30,		Dec. 31,			Sept. 30,		Dec. 31,
(in millions)	2021		2020		Balance Sheet Caption	2021		2020		Balance Sheet Caption
Interest rate swaps designated as fair value hedges	$	129	$	210	Deferred income taxes and other assets	$	—	$	—	Post-employment obligations, deferred income taxes and other long-term liabilities
Foreign currency forward exchange contracts:
Hedging instruments		193		30	Prepaid expenses and other receivables		69		433	Other accrued liabilities
Others not designated as hedges		45		60	Prepaid expenses and other receivables		68		65	Other accrued liabilities
Debt designated as a hedge of net investment in a foreign subsidiary		—		—	n/a		536		577	Long-term debt
	$	367	$	300		$	673	$	1,075

The following table summarizes the activity for foreign currency forward exchange contracts designated as cash flow hedges and certain other derivative financial instruments, as well as the amounts and location of income (expense) and gain (loss) reclassified into income for the three and nine months ended September 30, 2021 and 2020.

	Gain (loss) Recognized in Other								Income (expense) and Gain (loss)
	Comprehensive Income (loss)								Reclassified into Income
	Three Months				Nine Months				Three Months				Nine Months
	Ended Sept. 30				Ended Sept. 30				Ended Sept. 30				Ended Sept. 30
(in millions)	2021		2020		2021		2020		2021		2020		2021		2020		Income Statement Caption
Foreign currency forward exchange contracts designated as cash flow hedges	$	96	$	(103)	$	142	$	35	$	(92)	$	48	$	(207)	$	90	Cost of products sold
Debt designated as a hedge of net investment in a foreign subsidiary		4		(10)		41		(20)		—		—		—		—	n/a
Interest rate swaps designated as fair value hedges		n/a		n/a		n/a		n/a		(14)		(11)		(81)		184	Interest expense

Note 10 — Financial Instruments, Derivatives and Fair Value Measures (Continued)

Losses of $18 million and $100 million were recognized in the three months ended September 30, 2021 and 2020, respectively, related to foreign currency forward exchange contracts not designated as a hedge. Gains of $15 million and losses of $198 million were recognized in the nine months ended September 30, 2021 and 2020, respectively, related to foreign currency forward exchange contracts not designated as a hedge. These amounts are reported in the Condensed Consolidated Statement of Earnings on the Net foreign exchange (gain) loss line.

The carrying values and fair values of certain financial instruments as of September 30, 2021 and December 31, 2020 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 non-performance by these counterparties.

	September 30, 2021				December 31, 2020
	Carrying		Fair		Carrying		Fair
(in millions)	Value		Value		Value		Value
Long-term Investment Securities:
Equity securities	$	758	$	758	$	776	$	776
Other		54		54		45		45
Total Long-term Debt		(18,200)		(21,330)		(18,534)		(22,809)
Foreign Currency Forward Exchange Contracts:
Receivable position		238		238		90		90
(Payable) position		(137)		(137)		(498)		(498)
Interest Rate Hedge Contracts:
Receivable position		129		129		210		210

The fair value of the debt was determined based on significant other observable inputs, including current interest rates.

Note 10 — Financial Instruments, Derivatives and Fair Value Measures (Continued)

The following table summarizes the bases used to measure certain assets and liabilities at fair value on a recurring basis in the balance sheet:

			Basis of Fair Value Measurement
			Quoted		Significant
			Prices in		Other		Significant
	Outstanding		Active		Observable		Unobservable
(in millions)	Balances		Markets		Inputs		Inputs
September 30, 2021:
Equity securities	$	398	$	398	$	—	$	—
Interest rate swap derivative financial instruments		129		—		129		—
Foreign currency forward exchange contracts		238		—		238		—
Total Assets	$	765	$	398	$	367	$	—
Fair value of hedged long-term debt	$	2,967	$	—	$	2,967	$	—
Foreign currency forward exchange contracts		137		—		137		—
Contingent consideration related to business combinations		129		—		—		129
Total Liabilities	$	3,233	$	—	$	3,104	$	129
December 31, 2020:
Equity securities	$	386	$	386	$	—	$	—
Interest rate swap derivative financial instruments		210		—		210		—
Foreign currency forward exchange contracts		90		—		90		—
Total Assets	$	686	$	386	$	300	$	—
Fair value of hedged long-term debt	$	3,049	$	—	$	3,049	$	—
Foreign currency forward exchange contracts		498		—		498		—
Contingent consideration related to business combinations		68		—		—		68
Total Liabilities	$	3,615	$	—	$	3,547	$	68

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 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 using significant other observable inputs.

The increase in contingent consideration during the year was a result of a recent acquisition. The fair value of the contingent consideration was determined based on independent appraisals at the time of acquisition, adjusted for the time value of money and other changes in fair value.

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Litigation and Environmental Matters

9 Months Ended

Sep. 30, 2021

Litigation and Environmental Matters

Litigation and Environmental Matters

Note 11 — Litigation and Environmental Matters

Abbott has been identified as a potentially responsible party for investigation and cleanup costs at a number of locations in the United States and Puerto Rico under federal and state remediation laws and is investigating potential contamination at a number of company-owned locations. Abbott has recorded an estimated cleanup cost for each site for which management believes Abbott has a probable loss exposure. No individual site cleanup exposure is expected to exceed $4 million, and the aggregate cleanup exposure is not expected to exceed $10 million.

Abbott is involved in various claims and legal proceedings, and Abbott estimates the range of possible loss for its legal proceedings and environmental exposures to be from approximately $25 million to $45 million. The recorded accrual balance at September 30, 2021 for these proceedings and exposures was approximately $35 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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Post-Employment Benefits

9 Months Ended

Sep. 30, 2021

Post-Employment Benefits

Post-Employment Benefits

Note 12 — Post-Employment Benefits

Retirement plans consist of defined benefit, defined contribution, and medical and dental plans. Net periodic benefit costs, other than service costs, are recognized in the Other (income) expense, net line of the Condensed Consolidated Statement of Earnings. Net cost recognized in continuing operations for the three and nine months ended September 30 for Abbott’s major defined benefit plans and post-employment medical and dental benefit plans is as follows:

	Defined Benefit Plans								Medical and Dental Plans
	Three Months				Nine Months				Three Months				Nine Months
	Ended Sept. 30				Ended Sept. 30				Ended Sept. 30				Ended Sept. 30
(in millions)	2021		2020		2021		2020		2021		2020		2021		2020
Service cost - benefits earned during the period	$	98	$	85	$	294	$	251	$	14	$	12	$	42	$	35
Interest cost on projected benefit obligations		62		75		186		224		8		11		25		32
Expected return on plan assets		(211)		(193)		(633)		(576)		(6)		(7)		(20)		(21)
Net amortization of:
Actuarial loss, net		79		64		238		191		7		5		21		15
Prior service cost (credit)		—		—		1		1		(7)		(7)		(21)		(21)
Net cost - continuing operations	$	28	$	31	$	86	$	91	$	16	$	14	$	47	$	40

Abbott funds its domestic defined benefit plans according to Internal Revenue Service funding limitations. International pension plans are funded according to similar regulations. In the first nine months of 2021 and 2020, $366 million and $350 million, respectively, were contributed to defined benefit plans and $26 million and $11 million, respectively, were contributed to the post-employment medical and dental plans.

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Taxes on Earnings

9 Months Ended

Sep. 30, 2021

Taxes on Earnings

Taxes on Earnings

Note 13 — 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 nine months of 2021 and 2020, taxes on earnings from continuing operations include approximately $97 million and $87 million, respectively, in excess tax benefits associated with share-based compensation. In the first nine months of 2020, taxes on earnings from continuing operations also include approximately $81 million in tax benefits related to the settlement of the former St. Jude Medical consolidated group’s 2014 through 2016 federal income tax returns in the U.S. Earnings from discontinued operations, net of tax, in the first nine months of 2020 reflect the recognition of $20 million of net tax benefits primarily as a result of the resolution of various tax positions related to prior years.

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 approximately $80 million, including cash adjustments, within the next twelve months as a result of concluding various domestic and international tax matters.

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Segment Information

9 Months Ended

Sep. 30, 2021

Segment Information

Segment Information

Note 14 — 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, physician offices and alternate-care testing sites. For segment reporting purposes, the Core Laboratory Diagnostics, Rapid Diagnostics, Molecular Diagnostics and Point of Care Diagnostics divisions are aggregated and reported as the Diagnostic Products segment.

Medical Devices — Worldwide sales of rhythm management, electrophysiology, heart failure, vascular, structural heart, neuromodulation and diabetes care products. For segment reporting purposes, the Cardiac Rhythm Management, Electrophysiology and Heart Failure, Vascular, Structural Heart, Neuromodulation and Diabetes Care divisions are aggregated and reported as the Medical Devices segment.

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.

Note 14 — Segment Information (Continued)

The following segment information has been prepared in accordance with the internal accounting policies of Abbott, as described above, and is not presented in accordance with generally accepted accounting principles applied to the consolidated financial statements.

	Net Sales to External Customers								Operating Earnings
	Three Months				Nine Months				Three Months				Nine Months
	Ended Sept. 30				Ended Sept. 30				Ended Sept. 30				Ended Sept. 30
(in millions)	2021		2020		2021		2020		2021		2020		2021		2020
Established Pharmaceutical Products	$	1,265	$	1,099	$	3,515	$	3,156	$	293	$	201	$	682	$	588
Nutritional Products		2,108		1,924		6,252		5,711		431		394		1,388		1,327
Diagnostic Products		3,912		2,640		11,173		6,460		1,652		875		4,429		1,802
Medical Devices		3,632		3,170		10,618		8,530		1,160		928		3,375		2,122
Total Reportable Segments		10,917		8,833		31,558		23,857		3,536		2,398		9,874		5,839
Other		11		20		49		50
Net sales	$	10,928	$	8,853	$	31,607	$	23,907
Corporate functions and benefit plan costs										(204)		(129)		(450)		(367)
Net interest expense										(123)		(127)		(370)		(373)
Share-based compensation (a)										(114)		(100)		(534)		(448)
Amortization of intangible assets										(520)		(510)		(1,533)		(1,624)
Other, net (b)										(82)		(111)		(1,103)		(447)
Earnings from continuing operations before taxes									$	2,493	$	1,421	$	5,884	$	2,580

(a) Approximately 50 percent of the annual net cost of share-based awards will typically be recognized in the first quarter due to the timing of the granting of share-based awards.

(b) Other, net for the three and nine months ended September 30, 2021 and 2020 includes integration costs associated with the acquisition of St. Jude Medical and Alere, and restructuring charges. 2021 restructuring charges include Abbott’s restructuring plan for its COVID-19 test manufacturing network. Other, net for the nine months ended September 30, 2021 also includes costs related to certain litigation. Other, net for the three and nine months ended September 30, 2020 also includes costs related to asset impairments, partially offset by income from the settlement of litigation.

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New Accounting Standards (Policies)

9 Months Ended

Sep. 30, 2021

New Accounting Standards

Recently Adopted Accounting Standards

Recently Adopted Accounting Standards

In December 2019, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes, which among other things, eliminates certain exceptions in the current rules regarding the approach for intraperiod tax allocations and the methodology for calculating income taxes in an interim period, and clarifies the accounting for transactions that result in a step-up in the tax basis of goodwill. Abbott adopted the standard on January 1, 2021. The new standard did not have an impact on its condensed consolidated financial statements.

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Revenue (Tables)

9 Months Ended

Sep. 30, 2021

Revenue

Schedule of reportable segment included under sales category

	Three Months Ended September 30, 2021						Three Months Ended September 30, 2020
(in millions)	U.S.		Int’l		Total		U.S.		Int’l		Total
Established Pharmaceutical Products —
Key Emerging Markets	$	—	$	936	$	936	$	—	$	799	$	799
Other		—		329		329		—		300		300
Total		—		1,265		1,265		—		1,099		1,099
Nutritionals —
Pediatric Nutritionals		586		514		1,100		488		518		1,006
Adult Nutritionals		333		675		1,008		330		588		918
Total		919		1,189		2,108		818		1,106		1,924
Diagnostics —
Core Laboratory		291		1,001		1,292		284		892		1,176
Molecular		162		183		345		220		238		458
Point of Care		100		35		135		96		35		131
Rapid Diagnostics		1,394		746		2,140		533		342		875
Total		1,947		1,965		3,912		1,133		1,507		2,640
Medical Devices —
Rhythm Management		266		305		571		242		265		507
Electrophysiology		192		293		485		192		249		441
Heart Failure		170		59		229		144		46		190
Vascular		219		425		644		230		400		630
Structural Heart		177		215		392		159		194		353
Neuromodulation		149		41		190		170		36		206
Diabetes Care		323		798		1,121		226		617		843
Total		1,496		2,136		3,632		1,363		1,807		3,170
Other		6		5		11		15		5		20
Total	$	4,368	$	6,560	$	10,928	$	3,329	$	5,524	$	8,853

Note 3 — Revenue (Continued)

	Nine Months Ended September 30, 2021						Nine Months Ended September 30, 2020
(in millions)	U.S.		Int’l		Total		U.S.		Int’l		Total
Established Pharmaceutical Products —
Key Emerging Markets	$	—	$	2,672	$	2,672	$	—	$	2,376	$	2,376
Other		—		843		843		—		780		780
Total		—		3,515		3,515		—		3,156		3,156
Nutritionals —
Pediatric Nutritionals		1,622		1,637		3,259		1,490		1,629		3,119
Adult Nutritionals		1,006		1,987		2,993		948		1,644		2,592
Total		2,628		3,624		6,252		2,438		3,273		5,711
Diagnostics —
Core Laboratory		845		2,935		3,780		840		2,312		3,152
Molecular		431		651		1,082		429		527		956
Point of Care		289		112		401		278		109		387
Rapid Diagnostics		3,178		2,732		5,910		1,246		719		1,965
Total		4,743		6,430		11,173		2,793		3,667		6,460
Medical Devices —
Rhythm Management		776		881		1,657		655		727		1,382
Electrophysiology		580		823		1,403		476		652		1,128
Heart Failure		483		167		650		411		140		551
Vascular		684		1,292		1,976		628		1,108		1,736
Structural Heart		537		654		1,191		386		508		894
Neuromodulation		460		124		584		392		97		489
Diabetes Care		865		2,292		3,157		614		1,736		2,350
Total		4,385		6,233		10,618		3,562		4,968		8,530
Other		31		18		49		30		20		50
Total	$	11,787	$	19,820	$	31,607	$	8,823	$	15,084	$	23,907

Schedule of changes in contract liabilities

(in millions)
Contract Liabilities:
Balance at December 31, 2020	$	405
Unearned revenue from cash received during the period		416
Revenue recognized related to contract liability balance		(409)
Balance at September 30, 2021	$	412

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Supplemental Financial Information (Tables)

9 Months Ended

Sep. 30, 2021

Supplemental Financial Information

Summary of activity of allowance for doubtful accounts

(in millions)
Allowance for Doubtful Accounts:
Balance at December 31, 2020	$	288
Provisions/charges to income		41
Amounts charged off and other deductions		(18)
Balance at September 30, 2021	$	311

Schedule of long-term investments

	September 30,		December 31,
(in millions)	2021		2020
Long-term Investments:
Equity securities	$	758	$	776
Other		54		45
Total	$	812	$	821

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Changes in Accumulated Other Comprehensive Income (Loss) (Tables)

9 Months Ended

Sep. 30, 2021

Changes in Accumulated Other Comprehensive Income (Loss)

Schedule of accumulated other comprehensive income (loss), net of taxes

	Three Months Ended September 30
									Cumulative Gains (Losses)
	Cumulative Foreign				Net Actuarial (Losses) and				on Derivative Instruments
	Currency Translation				Prior Service (Costs) and				Designated as Cash Flow
	Adjustments				Credits				Hedges
(in millions)	2021		2020		2021		2020		2021		2020
Balance at June 30	$	(5,230)	$	(5,713)	$	(3,738)	$	(3,446)	$	(98)	$	79
Other comprehensive income (loss) before reclassifications		(391)		112		16		(21)		70		(74)
Amounts reclassified from accumulated other comprehensive income		—		—		62		49		69		(30)
Net current period comprehensive income (loss)		(391)		112		78		28		139		(104)
Balance at September 30	$	(5,621)	$	(5,601)	$	(3,660)	$	(3,418)	$	41	$	(25)

	Nine Months Ended September 30
									Cumulative Gains (Losses)
	Cumulative Foreign				Net Actuarial (Losses) and				on Derivative Instruments
	Currency Translation				Prior Service (Costs) and				Designated as Cash Flow
	Adjustments				Credits				Hedges
(in millions)	2021		2020		2021		2020		2021		2020
Balance at January 1	$	(4,859)	$	(4,924)	$	(3,871)	$	(3,540)	$	(216)	$	(1)
Other comprehensive income (loss) before reclassifications		(762)		(677)		26		(23)		138		35
Amounts reclassified from accumulated other comprehensive income		—		—		185		145		119		(59)
Net current period comprehensive income (loss)		(762)		(677)		211		122		257		(24)
Balance at September 30	$	(5,621)	$	(5,601)	$	(3,660)	$	(3,418)	$	41	$	(25)

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Restructuring Plans (Tables)

9 Months Ended

Sep. 30, 2021

Restructuring Plans

Schedule of restructuring reserve and related cost

	Inventory-
	Related		Fixed Asset		Other Exit
(in millions)	Charges		Write-Downs		Costs		Total
Restructuring charges recorded in 2021	$	248	$	80	$	152	$	480
Payments		—		—		(54)		(54)
Other non-cash		(248)		(80)		—		(328)
Accrued balance at September 30, 2021	$	—	$	—	$	98	$	98

Summary of restructuring activity

(in millions)
Accrued balance at December 31, 2020	$	70
Restructuring charges recorded in 2021		17
Payments and other adjustments		(30)
Accrued balance at September 30, 2021	$	57

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Incentive Stock Programs (Tables)

9 Months Ended

Sep. 30, 2021

Incentive Stock Programs

Schedule of stock options outstanding and exercisable

	Outstanding		Exercisable
Number of shares		29,594,797		22,674,416
Weighted average remaining life (years)		5.8		4.9
Weighted average exercise price	$	63.08	$	51.79
Aggregate intrinsic value (in millions)	$	1,645	$	1,504

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Financial Instruments, Derivatives and Fair Value Measures (Tables)

9 Months Ended

Sep. 30, 2021

Financial Instruments, Derivatives and Fair Value Measures

Summary of the amounts and location of certain derivative financial instruments

	Fair Value - Assets					Fair Value - Liabilities
	Sept. 30,		Dec. 31,			Sept. 30,		Dec. 31,
(in millions)	2021		2020		Balance Sheet Caption	2021		2020		Balance Sheet Caption
Interest rate swaps designated as fair value hedges	$	129	$	210	Deferred income taxes and other assets	$	—	$	—	Post-employment obligations, deferred income taxes and other long-term liabilities
Foreign currency forward exchange contracts:
Hedging instruments		193		30	Prepaid expenses and other receivables		69		433	Other accrued liabilities
Others not designated as hedges		45		60	Prepaid expenses and other receivables		68		65	Other accrued liabilities
Debt designated as a hedge of net investment in a foreign subsidiary		—		—	n/a		536		577	Long-term debt
	$	367	$	300		$	673	$	1,075

Schedule of derivatives gain (loss) in OCI and earnings

	Gain (loss) Recognized in Other								Income (expense) and Gain (loss)
	Comprehensive Income (loss)								Reclassified into Income
	Three Months				Nine Months				Three Months				Nine Months
	Ended Sept. 30				Ended Sept. 30				Ended Sept. 30				Ended Sept. 30
(in millions)	2021		2020		2021		2020		2021		2020		2021		2020		Income Statement Caption
Foreign currency forward exchange contracts designated as cash flow hedges	$	96	$	(103)	$	142	$	35	$	(92)	$	48	$	(207)	$	90	Cost of products sold
Debt designated as a hedge of net investment in a foreign subsidiary		4		(10)		41		(20)		—		—		—		—	n/a
Interest rate swaps designated as fair value hedges		n/a		n/a		n/a		n/a		(14)		(11)		(81)		184	Interest expense

Schedule of carrying values and fair values of certain financial instruments

	September 30, 2021				December 31, 2020
	Carrying		Fair		Carrying		Fair
(in millions)	Value		Value		Value		Value
Long-term Investment Securities:
Equity securities	$	758	$	758	$	776	$	776
Other		54		54		45		45
Total Long-term Debt		(18,200)		(21,330)		(18,534)		(22,809)
Foreign Currency Forward Exchange Contracts:
Receivable position		238		238		90		90
(Payable) position		(137)		(137)		(498)		(498)
Interest Rate Hedge Contracts:
Receivable position		129		129		210		210

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

			Basis of Fair Value Measurement
			Quoted		Significant
			Prices in		Other		Significant
	Outstanding		Active		Observable		Unobservable
(in millions)	Balances		Markets		Inputs		Inputs
September 30, 2021:
Equity securities	$	398	$	398	$	—	$	—
Interest rate swap derivative financial instruments		129		—		129		—
Foreign currency forward exchange contracts		238		—		238		—
Total Assets	$	765	$	398	$	367	$	—
Fair value of hedged long-term debt	$	2,967	$	—	$	2,967	$	—
Foreign currency forward exchange contracts		137		—		137		—
Contingent consideration related to business combinations		129		—		—		129
Total Liabilities	$	3,233	$	—	$	3,104	$	129
December 31, 2020:
Equity securities	$	386	$	386	$	—	$	—
Interest rate swap derivative financial instruments		210		—		210		—
Foreign currency forward exchange contracts		90		—		90		—
Total Assets	$	686	$	386	$	300	$	—
Fair value of hedged long-term debt	$	3,049	$	—	$	3,049	$	—
Foreign currency forward exchange contracts		498		—		498		—
Contingent consideration related to business combinations		68		—		—		68
Total Liabilities	$	3,615	$	—	$	3,547	$	68

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Post-Employment Benefits (Tables)

9 Months Ended

Sep. 30, 2021

Post-Employment Benefits

Schedule of components of the net periodic benefit cost for the entity's major defined benefit plans and post-employment medical and dental benefit plans

	Defined Benefit Plans								Medical and Dental Plans
	Three Months				Nine Months				Three Months				Nine Months
	Ended Sept. 30				Ended Sept. 30				Ended Sept. 30				Ended Sept. 30
(in millions)	2021		2020		2021		2020		2021		2020		2021		2020
Service cost - benefits earned during the period	$	98	$	85	$	294	$	251	$	14	$	12	$	42	$	35
Interest cost on projected benefit obligations		62		75		186		224		8		11		25		32
Expected return on plan assets		(211)		(193)		(633)		(576)		(6)		(7)		(20)		(21)
Net amortization of:
Actuarial loss, net		79		64		238		191		7		5		21		15
Prior service cost (credit)		—		—		1		1		(7)		(7)		(21)		(21)
Net cost - continuing operations	$	28	$	31	$	86	$	91	$	16	$	14	$	47	$	40

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Segment Information (Tables)

9 Months Ended

Sep. 30, 2021

Segment Information

Schedule of segment information - net sales and operating earnings

	Net Sales to External Customers								Operating Earnings
	Three Months				Nine Months				Three Months				Nine Months
	Ended Sept. 30				Ended Sept. 30				Ended Sept. 30				Ended Sept. 30
(in millions)	2021		2020		2021		2020		2021		2020		2021		2020
Established Pharmaceutical Products	$	1,265	$	1,099	$	3,515	$	3,156	$	293	$	201	$	682	$	588
Nutritional Products		2,108		1,924		6,252		5,711		431		394		1,388		1,327
Diagnostic Products		3,912		2,640		11,173		6,460		1,652		875		4,429		1,802
Medical Devices		3,632		3,170		10,618		8,530		1,160		928		3,375		2,122
Total Reportable Segments		10,917		8,833		31,558		23,857		3,536		2,398		9,874		5,839
Other		11		20		49		50
Net sales	$	10,928	$	8,853	$	31,607	$	23,907
Corporate functions and benefit plan costs										(204)		(129)		(450)		(367)
Net interest expense										(123)		(127)		(370)		(373)
Share-based compensation (a)										(114)		(100)		(534)		(448)
Amortization of intangible assets										(520)		(510)		(1,533)		(1,624)
Other, net (b)										(82)		(111)		(1,103)		(447)
Earnings from continuing operations before taxes									$	2,493	$	1,421	$	5,884	$	2,580

(a) Approximately 50 percent of the annual net cost of share-based awards will typically be recognized in the first quarter due to the timing of the granting of share-based awards.

(b) Other, net for the three and nine months ended September 30, 2021 and 2020 includes integration costs associated with the acquisition of St. Jude Medical and Alere, and restructuring charges. 2021 restructuring charges include Abbott’s restructuring plan for its COVID-19 test manufacturing network. Other, net for the nine months ended September 30, 2021 also includes costs related to certain litigation. Other, net for the three and nine months ended September 30, 2020 also includes costs related to asset impairments, partially offset by income from the settlement of litigation.

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Revenue (Details) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2021 USD ($) segment	Sep. 30, 2020 USD ($) segment	Sep. 30, 2021 USD ($) segment	Sep. 30, 2020 USD ($) segment
Revenue
Number of reportable segments | segment	4	4	4	4
Net sales	$ 10,928	$ 8,853	$ 31,607	$ 23,907
United States
Revenue
Net sales	4,368	3,329	11,787	8,823
Int'l
Revenue
Net sales	6,560	5,524	19,820	15,084
Established Pharmaceutical Products
Revenue
Net sales	1,265	1,099	3,515	3,156
Established Pharmaceutical Products | Int'l
Revenue
Net sales	1,265	1,099	3,515	3,156
Nutritional Products
Revenue
Net sales	2,108	1,924	6,252	5,711
Nutritional Products | United States
Revenue
Net sales	919	818	2,628	2,438
Nutritional Products | Int'l
Revenue
Net sales	1,189	1,106	3,624	3,273
Diagnostic Products
Revenue
Net sales	3,912	2,640	11,173	6,460
Diagnostic Products | United States
Revenue
Net sales	1,947	1,133	4,743	2,793
Diagnostic Products | Int'l
Revenue
Net sales	1,965	1,507	6,430	3,667
Medical Devices
Revenue
Net sales	3,632	3,170	10,618	8,530
Medical Devices | United States
Revenue
Net sales	1,496	1,363	4,385	3,562
Medical Devices | Int'l
Revenue
Net sales	2,136	1,807	6,233	4,968
Other
Revenue
Net sales	11	20	49	50
Other | United States
Revenue
Net sales	6	15	31	30
Other | Int'l
Revenue
Net sales	5	5	18	20
Key Emerging Markets | Established Pharmaceutical Products
Revenue
Net sales	936	799	2,672	2,376
Key Emerging Markets | Established Pharmaceutical Products | Int'l
Revenue
Net sales	936	799	2,672	2,376
Other | Established Pharmaceutical Products
Revenue
Net sales	329	300	843	780
Other | Established Pharmaceutical Products | Int'l
Revenue
Net sales	329	300	843	780
Pediatric Nutritionals | Nutritional Products
Revenue
Net sales	1,100	1,006	3,259	3,119
Pediatric Nutritionals | Nutritional Products | United States
Revenue
Net sales	586	488	1,622	1,490
Pediatric Nutritionals | Nutritional Products | Int'l
Revenue
Net sales	514	518	1,637	1,629
Adult Nutritionals | Nutritional Products
Revenue
Net sales	1,008	918	2,993	2,592
Adult Nutritionals | Nutritional Products | United States
Revenue
Net sales	333	330	1,006	948
Adult Nutritionals | Nutritional Products | Int'l
Revenue
Net sales	675	588	1,987	1,644
Core Laboratory | Diagnostic Products
Revenue
Net sales	1,292	1,176	3,780	3,152
Core Laboratory | Diagnostic Products | United States
Revenue
Net sales	291	284	845	840
Core Laboratory | Diagnostic Products | Int'l
Revenue
Net sales	1,001	892	2,935	2,312
Molecular | Diagnostic Products
Revenue
Net sales	345	458	1,082	956
Molecular | Diagnostic Products | United States
Revenue
Net sales	162	220	431	429
Molecular | Diagnostic Products | Int'l
Revenue
Net sales	183	238	651	527
Point of Care | Diagnostic Products
Revenue
Net sales	135	131	401	387
Point of Care | Diagnostic Products | United States
Revenue
Net sales	100	96	289	278
Point of Care | Diagnostic Products | Int'l
Revenue
Net sales	35	35	112	109
Rapid Diagnostics | Diagnostic Products
Revenue
Net sales	2,140	875	5,910	1,965
Rapid Diagnostics | Diagnostic Products | United States
Revenue
Net sales	1,394	533	3,178	1,246
Rapid Diagnostics | Diagnostic Products | Int'l
Revenue
Net sales	746	342	2,732	719
Rhythm Management | Medical Devices
Revenue
Net sales	571	507	1,657	1,382
Rhythm Management | Medical Devices | United States
Revenue
Net sales	266	242	776	655
Rhythm Management | Medical Devices | Int'l
Revenue
Net sales	305	265	881	727
Electrophysiology | Medical Devices
Revenue
Net sales	485	441	1,403	1,128
Electrophysiology | Medical Devices | United States
Revenue
Net sales	192	192	580	476
Electrophysiology | Medical Devices | Int'l
Revenue
Net sales	293	249	823	652
Heart Failure | Medical Devices
Revenue
Net sales	229	190	650	551
Heart Failure | Medical Devices | United States
Revenue
Net sales	170	144	483	411
Heart Failure | Medical Devices | Int'l
Revenue
Net sales	59	46	167	140
Vascular | Medical Devices
Revenue
Net sales	644	630	1,976	1,736
Vascular | Medical Devices | United States
Revenue
Net sales	219	230	684	628
Vascular | Medical Devices | Int'l
Revenue
Net sales	425	400	1,292	1,108
Structural Heart | Medical Devices
Revenue
Net sales	392	353	1,191	894
Structural Heart | Medical Devices | United States
Revenue
Net sales	177	159	537	386
Structural Heart | Medical Devices | Int'l
Revenue
Net sales	215	194	654	508
Neuromodulation | Medical Devices
Revenue
Net sales	190	206	584	489
Neuromodulation | Medical Devices | United States
Revenue
Net sales	149	170	460	392
Neuromodulation | Medical Devices | Int'l
Revenue
Net sales	41	36	124	97
Diabetes Care | Medical Devices
Revenue
Net sales	1,121	843	3,157	2,350
Diabetes Care | Medical Devices | United States
Revenue
Net sales	323	226	865	614
Diabetes Care | Medical Devices | Int'l
Revenue
Net sales	$ 798	$ 617	$ 2,292	$ 1,736

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Revenue - Remaining Performance Obligations (Details) $ in Millions	9 Months Ended
	Sep. 30, 2021 USD ($)
Diagnostic Products
Remaining Performance Obligations
Remaining performance obligations	$ 3,900
Medical Devices
Remaining Performance Obligations
Remaining performance obligations	$ 445
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-10-01
Remaining Performance Obligations
Expected timing of satisfaction period (in months)	24 months
Percentage of remaining performance obligation expected to be recognized in period	60.00%
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-10-01
Remaining Performance Obligations
Expected timing of satisfaction period (in months)	12 months
Percentage of remaining performance obligation expected to be recognized in period	16.00%

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Revenue - Practical Expedient (Details)	9 Months Ended
	Sep. 30, 2021
Revenue
Practical expedient in remaining performance obligations related to contracts	true

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Revenue - Other Contract Assets and Liabilities (Details) $ in Millions	9 Months Ended
	Sep. 30, 2021 USD ($)
Contract Liabilities
Balance at December 31, 2020	$ 405
Unearned revenue from cash received during the period	416
Revenue recognized related to contract liability balance	(409)
Balance at September 30, 2021	$ 412

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Supplemental Financial Information - Income Statement (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Supplemental Financial Information
Earnings from continuing operations allocated to common shares	$ 2,092	$ 1,226	$ 5,061	$ 2,302
Net earnings allocated to common shares	$ 2,092	$ 1,226	$ 5,061	$ 2,322

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Supplemental Financial Information - Cash Flows (Details) - USD ($) $ in Millions	9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020
Cash flow disclosures
Payment of cash taxes	$ 990	$ 700
Net tax benefits primarily as a result of the resolution of various tax positions related to prior years related to discontinued operation		20
Defined Benefit Plans
Cash flow disclosures
Pension contributions	$ 366	$ 350

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Supplemental Financial Information - Allowance for Doubtful Accounts (Details) $ in Millions	9 Months Ended
	Sep. 30, 2021 USD ($)
Allowances for Doubtful Accounts and Product Returns
Balance at December 31, 2020	$ 288
Provisions/charges to income	41
Amounts charged off and other deductions	(18)
Balance at September 30, 2021	$ 311

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Supplemental Financial Information - Investments (Details) - USD ($) $ in Millions	3 Months Ended	12 Months Ended
	Jun. 30, 2020	Dec. 31, 2018	Sep. 30, 2021	Dec. 31, 2020
Investments
Long-term Investments			$ 812	$ 821
Equity method investments carrying value			269
Equity investment without readily determinable fair value			91
Impairment of investments	$ 60
Unrealized gain		$ 50
Equity securities
Investments
Long-term Investments			758	776
Other
Investments
Long-term Investments			54	$ 45
St Jude Medical | Equity securities
Investments
Securities in mutual funds held in a rabbi trust			$ 382
Walk Vascular, LLC
Investments
Percentage of interest acquired			100.00%

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Changes in Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Changes in accumulated other comprehensive income (loss), net of income taxes
Beginning of the period			$ 32,784
Net current period comprehensive income (loss)	$ (174)	$ 36	(294)	$ (579)
End of the period	34,422		34,422
Cumulative Foreign Currency Translation Adjustments
Changes in accumulated other comprehensive income (loss), net of income taxes
Beginning of the period	(5,230)	(5,713)	(4,859)	(4,924)
Other comprehensive income (loss) before reclassifications	(391)	112	(762)	(677)
Amounts reclassified from accumulated other comprehensive income	0	0
Net current period comprehensive income (loss)	(391)	112	(762)	(677)
End of the period	(5,621)	(5,601)	(5,621)	(5,601)
Net Actuarial (Losses) and Prior Service (Costs) and Credits
Changes in accumulated other comprehensive income (loss), net of income taxes
Beginning of the period	(3,738)	(3,446)	(3,871)	(3,540)
Other comprehensive income (loss) before reclassifications	16	(21)	26	(23)
Amounts reclassified from accumulated other comprehensive income	62	49	185	145
Net current period comprehensive income (loss)	78	28	211	122
End of the period	(3,660)	(3,418)	(3,660)	(3,418)
Cumulative Gains (Losses) on Derivative Instruments Designated as Cash Flow Hedges
Changes in accumulated other comprehensive income (loss), net of income taxes
Beginning of the period	(98)	79	(216)	(1)
Other comprehensive income (loss) before reclassifications	70	(74)	138	35
Amounts reclassified from accumulated other comprehensive income	69	(30)	119	(59)
Net current period comprehensive income (loss)	139	(104)	257	(24)
End of the period	$ 41	$ (25)	$ 41	$ (25)

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Goodwill and Intangible Assets - Goodwill (Details) - USD ($) $ in Millions	9 Months Ended
	Sep. 30, 2021	Dec. 31, 2020
Goodwill and Intangible Assets
Goodwill	$ 23,299	$ 23,744
Decrease in goodwill from foreign currency translation adjustments	444
Amount of reductions of goodwill relating to impairments	0
Established Pharmaceutical Products
Goodwill and Intangible Assets
Goodwill	2,900
Nutritional Products
Goodwill and Intangible Assets
Goodwill	286
Diagnostic Products
Goodwill and Intangible Assets
Goodwill	3,800
Medical Devices
Goodwill and Intangible Assets
Goodwill	$ 16,400

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Goodwill and Intangible Assets - Intangible Assets (Details) - USD ($) $ in Millions	9 Months Ended
	Sep. 30, 2021	Dec. 31, 2020
Goodwill and Intangible Assets
Indefinite-lived intangible assets related to in-process R&D acquired in a business combination	$ 929	$ 1,200
Gross amount of amortizable intangible assets	27,800	27,800
Accumulated amortization of intangible assets	15,400	$ 14,200
Increase (Decrease) in intangible assets due to foreign currency translation adjustments	(152)
Estimated annual amortization expense, intangible assets, 2021	2,000
Estimated annual amortization expense, intangible assets, 2022	2,100
Estimated annual amortization expense, intangible assets, 2023	2,000
Estimated annual amortization expense, intangible assets, 2024	1,900
Estimated annual amortization expense, intangible assets, 2025	1,800
Established Pharmaceutical Products Segment
Goodwill and Intangible Assets
Impairment of amortizable intangible assets	13
Walk Vascular, LLC
Goodwill and Intangible Assets
Amortizable intangible assets acquired	130
Indefinite-lived intangible assets acquired	$ 90
Amortization term of acquired finite-lived intangible assets	9 years

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Restructuring Plans - Diagnostic Products segment (Details) - COVID-19 Test Manufacturing Network Restructuring Plan - USD ($) $ in Millions	3 Months Ended	9 Months Ended
	Jun. 30, 2021	Sep. 30, 2021
Restructuring costs
Restructuring charges	$ 499	$ 480
Payments		(54)
Other non-cash		(328)
Restructuring reserve		98
Inventory sold that was previously estimated to have no net realizable value		120
Inventory-related charges
Restructuring costs
Restructuring charges	248	248
Other non-cash		(248)
Fixed asset write-downs
Restructuring costs
Restructuring charges	80	80
Other non-cash		(80)
Other exit costs
Restructuring costs
Restructuring charges	$ 171	152
Payments		(54)
Restructuring reserve		98
Reduction of restructuring estimate		$ 19

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Restructuring Plans - St Jude and Alere Integrations (Details) - St Jude and Alere Integrations $ in Millions	9 Months Ended
	Sep. 30, 2021 USD ($)
Restructuring Reserve [Roll Forward]
Accrued balance at beginning of the period	$ 25
Restructuring charges recorded in 2021	5
Accrued balance at end of the period	10
Cost of products sold
Restructuring Reserve [Roll Forward]
Restructuring charges recorded in 2021	1
Selling, general and administrative expense
Restructuring Reserve [Roll Forward]
Restructuring charges recorded in 2021	$ 4

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Restructuring Plans - Streamline of Operations and Improve Efficiencies (Details) - Streamline of Operations and Improve Efficiencies $ in Millions	9 Months Ended
	Sep. 30, 2021 USD ($)
Restructuring costs
Accrued balance at beginning of the period	$ 70
Restructuring charges recorded in 2021	17
Payments and other adjustments	(30)
Accrued balance at end of the period	57
Cost of products sold
Restructuring costs
Restructuring charges recorded in 2021	1
Selling, general and administrative expense
Restructuring costs
Restructuring charges recorded in 2021	$ 16

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Incentive Stock Programs - General (Details)	9 Months Ended
	Sep. 30, 2021 shares
Incentive Stock Program
Incentive stock program, shares reserved for future grants	101,000,000
Stock options
Incentive Stock Program
Stock options granted during the period (in shares)	2,865,115
Restricted stock awards
Incentive Stock Program
Grants in period, restricted stock (in shares)	497,373
Restricted stock units
Incentive Stock Program
Awards and units granted during period (in shares)	4,670,845

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Incentive Stock Programs - Options (Details) $ / shares in Units, $ in Millions	9 Months Ended
	Sep. 30, 2021 USD ($) $ / shares shares
Incentive Stock Program
Total unrecognized compensation cost	$ 552
Total unrecognized compensation cost, recognition period	3 years
Stock options
Incentive Stock Program
Stock options outstanding, number of shares | shares	29,594,797
Exercisable options, number of shares | shares	22,674,416
Stock options outstanding, weighted-average remaining life	5 years 9 months 18 days
Exercisable options, weighted-average remaining life	4 years 10 months 24 days
Stock options outstanding, weighted-average exercise price (in dollars per share) | $ / shares	$ 63.08
Exercisable options, weighted-average exercise price (in dollars per share) | $ / shares	$ 51.79
Aggregate intrinsic value of options outstanding	$ 1,645
Aggregate intrinsic value of options exercisable	$ 1,504

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Debt and Lines of Credit (Details) € in Millions, $ in Millions	Sep. 28, 2020 EUR (€)	Sep. 28, 2020 USD ($)	Jun. 24, 2020 USD ($)
0.00% Notes, due 2020
Debt and Lines of Credit
Interest rate percentage	0.00%	0.00%
Repayments of debt	€ 1,140	$ 1,300
Senior Notes
Debt and Lines of Credit
Debt issued - principal amount			$ 1,300
1.150% Notes due 2028
Debt and Lines of Credit
Interest rate percentage			1.15%
Debt issued - principal amount			$ 650
1.400% Notes due 2030
Debt and Lines of Credit
Interest rate percentage			1.40%
Debt issued - principal amount			$ 650

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Financial Instruments, Derivatives and Fair Value Measures - Contracts (Details) - USD ($) $ in Millions	9 Months Ended	12 Months Ended
	Sep. 30, 2021	Dec. 31, 2020
Designated as hedging instrument | Yen-denominated long-term debt | Net investment hedges
Financial Instruments, Derivatives and Fair Value Measures
Term loan	$ 536	$ 577
Debt Instrument, Term	5 years	5 years
Designated as hedging instrument | Foreign currency forward exchange contracts | Cash flow hedges
Financial Instruments, Derivatives and Fair Value Measures
Gross notional amount	$ 8,700	$ 8,100
Minimum length of time over which accumulated gains and losses will be recognized in Cost of products sold	12 months
Maximum length of time over which accumulated gains and losses will be recognized in Cost of products sold	18 months
Designated as hedging instrument | Interest rate swaps | Fair value hedges
Financial Instruments, Derivatives and Fair Value Measures
Gross notional amount	$ 2,900	2,900
Not designated as hedging instrument | Foreign currency forward exchange contracts
Financial Instruments, Derivatives and Fair Value Measures
Gross notional amount	$ 11,400	$ 11,000

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Financial Instruments, Derivatives and Fair Value Measures - Location of Derivative Instruments (Details) - USD ($) $ in Millions	Sep. 30, 2021	Dec. 31, 2020
Derivative instruments and fair value
Fair Value - Assets	$ 367	$ 300
Fair Value - Liabilities	673	1,075
Designated as hedging instrument | Interest rate swaps | Deferred income taxes and other assets | Fair value hedges
Derivative instruments and fair value
Fair Value - Assets	129	210
Designated as hedging instrument | Foreign currency forward exchange contracts | Prepaid expenses and other receivables
Derivative instruments and fair value
Fair Value - Assets	193	30
Designated as hedging instrument | Foreign currency forward exchange contracts | Other accrued liabilities
Derivative instruments and fair value
Fair Value - Liabilities	69	433
Designated as hedging instrument | Debt | Long-term Debt | Net investment hedges
Derivative instruments and fair value
Fair Value - Liabilities	536	577
Not designated as hedging instrument | Foreign currency forward exchange contracts | Prepaid expenses and other receivables
Derivative instruments and fair value
Fair Value - Assets	45	60
Not designated as hedging instrument | Foreign currency forward exchange contracts | Other accrued liabilities
Derivative instruments and fair value
Fair Value - Liabilities	$ 68	$ 65

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Financial Instruments, Derivatives and Fair Value Measures - Gain or Loss (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Foreign currency forward exchange contracts | Not designated as hedging instrument
Gain (loss) on derivatives
Income (expense) and Gains (loss) Reclassified into Income	$ (18)	$ (100)	$ 15	$ (198)
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)	96	(103)	142	35
Income (expense) and Gains (loss) Reclassified into Income	(92)	48	(207)	90
Debt | Net investment hedges | Designated as hedging instrument
Gain (loss) on derivatives
Gain (loss) Recognized in Other Comprehensive Income (loss)	4	(10)	41	(20)
Interest rate swaps | Fair value hedges | Designated as hedging instrument | Interest expense
Gain (loss) on derivatives
Income (expense) and Gains (loss) Reclassified into Income	$ (14)	$ (11)	$ (81)	$ 184

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Financial Instruments, Derivatives and Fair Value Measures - Carrying Value and Fair Value (Details) - USD ($) $ in Millions	Sep. 30, 2021	Dec. 31, 2020
Fair value, asset and liability measures
Long-term Investments	$ 812	$ 821
Equity securities
Fair value, asset and liability measures
Long-term Investments	758	776
Carrying value
Fair value, asset and liability measures
Total Long-Term debt	(18,200)	(18,534)
Foreign currency forward exchange contracts, receivable position	238	90
Foreign currency forward exchange contracts, (payable) position	(137)	(498)
Interest rate hedge contracts, receivable position	129	210
Carrying value | Equity securities
Fair value, asset and liability measures
Long-term Investments	758	776
Carrying value | Other
Fair value, asset and liability measures
Long-term Investments	54	45
Fair value
Fair value, asset and liability measures
Total Long-Term debt	(21,330)	(22,809)
Foreign currency forward exchange contracts, receivable position	238	90
Foreign currency forward exchange contracts, (payable) position	(137)	(498)
Interest rate hedge contracts, receivable position	129	210
Fair value | Equity securities
Fair value, asset and liability measures
Long-term Investments	758	776
Fair value | Other
Fair value, asset and liability measures
Long-term Investments	$ 54	$ 45

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Financial Instruments, Derivatives and Fair Value Measures - Bases of Measurement (Details) - Recurring - USD ($) $ in Millions	Sep. 30, 2021	Dec. 31, 2020
Fair value, asset and liability measures
Equity securities	$ 398	$ 386
Interest rate swap derivative financial instruments	129	210
Foreign currency forward exchange contracts	238	90
Total Assets	765	686
Fair value of hedged long-term debt	2,967	3,049
Foreign currency forward exchange contracts	137	498
Contingent consideration related to business combinations	129	68
Total Liabilities	3,233	3,615
Quoted Prices in Active Markets
Fair value, asset and liability measures
Equity securities	398	386
Total Assets	398	386
Significant Other Observable Inputs
Fair value, asset and liability measures
Interest rate swap derivative financial instruments	129	210
Foreign currency forward exchange contracts	238	90
Total Assets	367	300
Fair value of hedged long-term debt	2,967	3,049
Foreign currency forward exchange contracts	137	498
Total Liabilities	3,104	3,547
Significant Unobservable Inputs
Fair value, asset and liability measures
Contingent consideration related to business combinations	129	68
Total Liabilities	$ 129	$ 68

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Litigation and Environmental Matters (Details) $ in Millions	Sep. 30, 2021 USD ($)
Loss Contingencies
Maximum expected cleanup exposure for individual site	$ 4
Maximum expected cleanup exposure in aggregate	10
Legal proceedings and environmental exposures
Loss Contingencies
Recorded accrual balance for legal proceedings and exposures	35
Legal proceedings and environmental exposures | Minimum
Loss Contingencies
Estimation of possible loss	25
Legal proceedings and environmental exposures | Maximum
Loss Contingencies
Estimation of possible loss	$ 45

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Post-Employment Benefits - (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Defined Benefit Plans
Defined benefit plan net periodic benefit cost
Service cost - benefits earned during the period	$ 98	$ 85	$ 294	$ 251
Interest cost on projected benefit obligations	62	75	186	224
Expected return on plan assets	(211)	(193)	(633)	(576)
Net amortization of:
Actuarial loss, net	79	64	238	191
Prior service cost (credit)			1	1
Net cost - continuing operations	28	31	86	91
Post-employment Obligations and Other Long-term Liabilities:
Company contributions			366	350
Medical and Dental Plans
Defined benefit plan net periodic benefit cost
Service cost - benefits earned during the period	14	12	42	35
Interest cost on projected benefit obligations	8	11	25	32
Expected return on plan assets	(6)	(7)	(20)	(21)
Net amortization of:
Actuarial loss, net	7	5	21	15
Prior service cost (credit)	(7)	(7)	(21)	(21)
Net cost - continuing operations	$ 16	$ 14	47	40
Post-employment Obligations and Other Long-term Liabilities:
Company contributions			$ 26	$ 11

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Taxes on Earnings (Details) - USD ($) $ in Millions	9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020
Taxes on Earnings
Tax benefits related to the settlement of the former St. Jude Medical consolidated group's 2014 through 2016 federal income tax returns in the U.S.		$ 81
Excess tax benefits associated with share-based compensation	$ 97	87
Net tax benefits primarily as a result of the resolution of various tax positions related to prior years related to discontinued operation		$ 20
Decrease reasonably possible in gross unrecognized tax benefits	$ 80

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Segment Information (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Segment Information
Net sales	$ 10,928	$ 8,853	$ 31,607	$ 23,907
Operating Earnings	2,546	1,495	6,047	2,925
Amortization of intangible assets	(520)	(510)	(1,533)	(1,624)
Earnings from continuing operations before taxes	$ 2,493	$ 1,421	$ 5,884	$ 2,580
Annual share-based awards recognized in first quarter (as a percent)	50.00%	50.00%	50.00%	50.00%
Established Pharmaceutical Products
Segment Information
Net sales	$ 1,265	$ 1,099	$ 3,515	$ 3,156
Nutritional Products
Segment Information
Net sales	2,108	1,924	6,252	5,711
Diagnostic Products
Segment Information
Net sales	3,912	2,640	11,173	6,460
Medical Devices
Segment Information
Net sales	3,632	3,170	10,618	8,530
Other Segment
Segment Information
Net sales	11	20	49	50
Total Reportable Segment Operating Earnings
Segment Information
Net sales	10,917	8,833	31,558	23,857
Operating Earnings	3,536	2,398	9,874	5,839
Total Reportable Segment Operating Earnings | Established Pharmaceutical Products
Segment Information
Net sales	1,265	1,099	3,515	3,156
Operating Earnings	293	201	682	588
Total Reportable Segment Operating Earnings | Nutritional Products
Segment Information
Net sales	2,108	1,924	6,252	5,711
Operating Earnings	431	394	1,388	1,327
Total Reportable Segment Operating Earnings | Diagnostic Products
Segment Information
Net sales	3,912	2,640	11,173	6,460
Operating Earnings	1,652	875	4,429	1,802
Total Reportable Segment Operating Earnings | Medical Devices
Segment Information
Net sales	3,632	3,170	10,618	8,530
Operating Earnings	1,160	928	3,375	2,122
Reconciling items
Segment Information
Corporate functions and benefit plans costs	(204)	(129)	(450)	(367)
Net interest expense	(123)	(127)	(370)	(373)
Share-based compensation	(114)	(100)	(534)	(448)
Amortization of intangible assets	(520)	(510)	(1,533)	(1,624)
Other, net	$ (82)	$ (111)	$ (1,103)	$ (447)