Financial Instruments, Derivatives and Fair Value Measures (Tables)

6 Months Ended

Jun. 30, 2022

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Summary of the amounts and location of certain derivative financial instruments

The following table summarizes the amounts and location of certain derivative financial instruments as of June 30, 2022 and December 31, 2021:

	Fair Value - Assets					Fair Value - Liabilities
(in millions)	June 30, 2022		Dec. 31, 2021		Balance Sheet Caption	June 30, 2022		Dec. 31, 2021		Balance Sheet Caption
Interest rate swaps designated as fair value hedges	$	—	$	87	Deferred income taxes and other assets	$	81	$	—	Post-employment obligations, deferred income taxes and other long-term liabilities
Foreign currency forward exchange contracts:
Hedging instruments	462		222		Prepaid expenses and other receivables	83		65		Other accrued liabilities
Others not designated as hedges	101		70		Prepaid expenses and other receivables	89		32		Other accrued liabilities
Debt designated as a hedge of net investment in a foreign subsidiary	—		—		n/a	437		521		Long-term debt
	$	563	$	379		$	690	$	618

Schedule of derivatives gain (loss) in OCI and earnings

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 six months ended June 30, 2022 and 2021.

	Gain (loss) Recognized in Other Comprehensive Income (loss)								Income (expense) and Gain (loss) Reclassified into Income
	Three Months Ended June 30				Six Months Ended June 30				Three Months Ended June 30				Six Months Ended June 30
(in millions)	2022		2021		2022		2021		2022		2021		2022		2021		Income Statement Caption
Foreign currency forward exchange contracts designated as cash flow hedges	$	141	$	(88)	$	92	$	46	$	43	$	(92)	$	70	$	(115)	Cost of products sold
Debt designated as a hedge of net investment in a foreign subsidiary	54		2		84		37		—		—		—		—		n/a
Interest rate swaps designated as fair value hedges	n/a		n/a		n/a		n/a		(47)		2		(168)		(67)		Interest expense

Schedule of carrying values and fair values of certain financial instruments

The carrying values and fair values of certain financial instruments as of June 30, 2022 and December 31, 2021 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.

	June 30, 2022				December 31, 2021
(in millions)	Carrying Value		Fair Value		Carrying Value		Fair Value
Long-term Investment Securities:
Equity securities	$	620	$	620	$	748	$	748
Other	114		114		68		68
Total Long-term Debt	(16,760)		(17,033)		(18,050)		(21,152)
Foreign Currency Forward Exchange Contracts:
Receivable position	563		563		292		292
(Payable) position	(172)		(172)		(97)		(97)
Interest Rate Hedge Contracts:
Receivable position	—		—		87		87
(Payable) position	(81)		(81)		—		—

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

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

			Basis of Fair Value Measurement
(in millions)	Outstanding Balances		Quoted Prices in Active Markets		Significant Other Observable Inputs		Significant Unobservable Inputs
June 30, 2022:
Equity securities	$	311	$	311	$	—	$	—
Foreign currency forward exchange contracts	563		—		563		—
Total Assets	$	874	$	311	$	563	$	—
Fair value of hedged long-term debt	$	2,759	$	—	$	2,759	$	—
Interest rate swap derivative financial instruments	81		—		81		—
Foreign currency forward exchange contracts	172		—		172		—
Contingent consideration related to business combinations	136		—		—		136
Total Liabilities	$	3,148	$	—	$	3,012	$	136
December 31, 2021:
Equity securities	$	402	$	402	$	—	$	—
Interest rate swap derivative financial instruments	87		—		87		—
Foreign currency forward exchange contracts	292		—		292		—
Total Assets	$	781	$	402	$	379	$	—
Fair value of hedged long-term debt	$	2,926	$	—	$	2,926	$	—
Foreign currency forward exchange contracts	97		—		97		—
Contingent consideration related to business combinations	130		—		—		130
Total Liabilities	$	3,153	$	—	$	3,023	$	130