UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 10-Q

(Mark One)

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

For the quarterly period ended June 30, 2022

OR

o 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 x No o

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 x No o

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 x	Accelerated Filer o
Non-Accelerated Filer o	Smaller reporting company o
	Emerging growth company o

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. o

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

As of June 30, 2022, Abbott Laboratories had 1,751,219,743 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	22
Item 4. Controls and Procedures	28
Part II - Other Information	28
Item 1. Legal Proceedings	28
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds	28
Item 6. Exhibits	29
Signature	30

2

Abbott Laboratories and Subsidiaries

Condensed Consolidated Statement of Earnings

(Unaudited)

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

	Three Months Ended				Six Months Ended
	June 30				June 30
	2022		2021		2022		2021
Net sales	$	11,257	$	10,223	$	23,152	$	20,679
Cost of products sold, excluding amortization of intangible assets	4,933		4,947		9,920		9,348
Amortization of intangible assets	507		504		1,019		1,013
Research and development	684		654		1,381		1,308
Selling, general and administrative	2,757		2,726		5,544		5,509
Total operating cost and expenses	8,881		8,831		17,864		17,178
Operating earnings	2,376		1,392		5,288		3,501
Interest expense	132		134		263		269
Interest (income)	(26)		(11)		(40)		(22)
Net foreign exchange (gain) loss	—		—		(3)		3
Other (income) expense, net	(82)		(79)		(160)		(140)
Earnings before taxes	2,352		1,348		5,228		3,391
Taxes on earnings	334		159		763		409
Net Earnings	$	2,018	$	1,189	$	4,465	$	2,982
Basic Earnings Per Common Share	$	1.15	$	0.67	$	2.53	$	1.67
Diluted Earnings Per Common Share	$	1.14	$	0.66	$	2.51	$	1.66
Average Number of Common Shares Outstanding Used for Basic Earnings Per Common Share	1,753,865		1,779,203		1,757,858		1,778,049
Dilutive Common Stock Options	11,598		14,076		12,115		14,369
Average Number of Common Shares Outstanding Plus Dilutive Common Stock Options	1,765,463		1,793,279		1,769,973		1,792,418
Outstanding Common Stock Options Having No Dilutive Effect	5,419		2,720		2,655		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				Six Months Ended
	June 30				June 30
	2022		2021		2022		2021
Net Earnings	$	2,018	$	1,189	$	4,465	$	2,982
Foreign currency translation gain (loss) adjustments	(315)		165		(421)		(371)
Net actuarial gains (losses) and amortization of net actuarial losses and prior service costs and credits, net of taxes of $12 and $25 in 2022 and $18 and $36 in 2021	54		48		116		133
Net gains (losses) for derivative instruments designated as cash flow hedges and other, net of taxes of $61 and $46 in 2022 and $2 and $48 in 2021	29		6		(27)		118
Other comprehensive income (loss)	(232)		219		(332)		(120)
Comprehensive Income	$	1,786	$	1,408	$	4,133	$	2,862

	June 30, 2022		December 31, 2021
Supplemental Accumulated Other Comprehensive Income (Loss) Information, net of tax:
Cumulative foreign currency translation (loss) adjustments	$	(6,260)	$	(5,839)
Net actuarial (losses) and prior service (costs) and credits	(2,554)		(2,670)
Cumulative gains (losses) on derivative instruments designated as cash flow hedges and other	108		135
Accumulated other comprehensive income (loss)	$	(8,706)	$	(8,374)

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)

	June 30, 2022		December 31, 2021
Assets
Current Assets:
Cash and cash equivalents	$	8,937	$	9,799
Short-term investments	353		450
Trade receivables, less allowances of $572 in 2022 and $519 in 2021	7,199		6,487
Inventories:
Finished products	3,570		3,081
Work in process	710		694
Materials	1,619		1,382
Total inventories	5,899		5,157
Prepaid expenses and other receivables	2,568		2,346
Total Current Assets	24,956		24,239
Investments	734		816
Property and equipment, at cost	19,458		19,364
Less: accumulated depreciation and amortization	10,640		10,405
Net property and equipment	8,818		8,959
Intangible assets, net of amortization	11,592		12,739
Goodwill	22,744		23,231
Deferred income taxes and other assets	5,358		5,212
	$	74,202	$	75,196
Liabilities and Shareholders’ Investment
Current Liabilities:
Trade accounts payable	$	4,493	$	4,408
Salaries, wages and commissions	1,315		1,625
Other accrued liabilities	5,400		5,181
Dividends payable	824		831
Income taxes payable	355		306
Current portion of long-term debt	5		754
Total Current Liabilities	12,392		13,105
Long-term debt	16,755		17,296
Post-employment obligations, deferred income taxes and other long-term liabilities	8,339		8,771
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: 2022: 1,985,676,735; 2021: 1,985,273,421	24,429		24,470
Common shares held in treasury, at cost — Shares: 2022: 234,456,992; 2021: 221,191,228	(13,720)		(11,822)
Earnings employed in the business	34,487		31,528
Accumulated other comprehensive income (loss)	(8,706)		(8,374)
Total Abbott Shareholders’ Investment	36,490		35,802
Noncontrolling Interests in Subsidiaries	226		222
Total Shareholders’ Investment	36,716		36,024
	$	74,202	$	75,196

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 June 30
	2022		2021
Common Shares:
Balance at March 31
Shares: 2022: 1,985,525,053; 2021: 1,982,205,491	$	24,304	$	24,023
Issued under incentive stock programs
Shares: 2022: 151,682; 2021: 347,997	10		18
Share-based compensation	125		119
Issuance of restricted stock awards	(10)		(7)
Balance at June 30
Shares: 2022: 1,985,676,735; 2021: 1,982,553,488	$	24,429	$	24,153
Common Shares Held in Treasury:
Balance at March 31
Shares: 2022: 234,582,764; 2021: 205,385,343	$	(13,726)	$	(9,845)
Issued under incentive stock programs
Shares: 2022: 135,663; 2021: 159,644	7		8
Purchased
Shares: 2022: 9,891; 2021: 4,510,440	(1)		(503)
Balance at June 30
Shares: 2022: 234,456,992; 2021: 209,736,139	$	(13,720)	$	(10,340)
Earnings Employed in the Business:
Balance at March 31	$	33,295	$	28,669
Net earnings	2,018		1,189
Cash dividends declared on common shares (per share — 2022: $0.47; 2021: $0.45)	(827)		(801)
Effect of common and treasury share transactions	1		(4)
Balance at June 30	$	34,487	$	29,053
Accumulated Other Comprehensive Income (Loss):
Balance at March 31	$	(8,474)	$	(9,285)
Other comprehensive income (loss)	(232)		219
Balance at June 30	$	(8,706)	$	(9,066)
Noncontrolling Interests in Subsidiaries:
Balance at March 31	$	230	$	226
Noncontrolling Interests’ share of income, business combinations, net of distributions and share repurchases	(4)		3
Balance at June 30	$	226	$	229

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)

	Six Months Ended June 30
	2022		2021
Common Shares:
Balance at January 1
Shares: 2022: 1,985,273,421; 2021: 1,981,156,896	$	24,470	$	24,145
Issued under incentive stock programs
Shares: 2022: 403,314; 2021: 1,396,592	24		65
Share-based compensation	449		423
Issuance of restricted stock awards	(514)		(480)
Balance at June 30
Shares: 2022: 1,985,676,735; 2021: 1,982,553,488	$	24,429	$	24,153
Common Shares Held in Treasury:
Balance at January 1
Shares: 2022: 221,191,228; 2021: 209,926,622	$	(11,822)	$	(10,042)
Issued under incentive stock programs
Shares: 2022: 4,280,139; 2021: 4,978,431	230		239
Purchased
Shares: 2022: 17,545,903; 2021: 4,787,948	(2,128)		(537)
Balance at June 30
Shares: 2022: 234,456,992; 2021: 209,736,139	$	(13,720)	$	(10,340)
Earnings Employed in the Business:
Balance at January 1	$	31,528	$	27,627
Net earnings	4,465		2,982
Cash dividends declared on common shares (per share — 2022: $0.94; 2021: $0.90)	(1,653)		(1,604)
Effect of common and treasury share transactions	147		48
Balance at June 30	$	34,487	$	29,053
Accumulated Other Comprehensive Income (Loss):
Balance at January 1	$	(8,374)	$	(8,946)
Other comprehensive income (loss)	(332)		(120)
Balance at June 30	$	(8,706)	$	(9,066)
Noncontrolling Interests in Subsidiaries:
Balance at January 1	$	222	$	219
Noncontrolling Interests’ share of income, business combinations, net of distributions and share repurchases	4		10
Balance at June 30	$	226	$	229

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)

	Six Months Ended June 30
	2022		2021
Cash Flow From (Used in) Operating Activities:
Net earnings	$	4,465	$	2,982
Adjustments to reconcile net earnings to net cash from operating activities —
Depreciation	626		795
Amortization of intangible assets	1,019		1,013
Share-based compensation	447		420
Trade receivables	(939)		200
Inventories	(1,030)		(542)
Other, net	(113)		(103)
Net Cash From Operating Activities	4,475		4,765
Cash Flow From (Used in) Investing Activities:
Acquisitions of property and equipment	(700)		(810)
Acquisitions of businesses and technologies, net of cash acquired	—		(15)
Proceeds from business dispositions	48		48
Sales (purchases) of other investment securities, net	18		81
Other	10		10
Net Cash From (Used in) Investing Activities	(624)		(686)
Cash Flow From (Used in) Financing Activities:
Net borrowings (repayments) of short-term debt and other	13		20
Proceeds from issuance of long-term debt	6		—
Repayments of long-term debt	(752)		(5)
Purchases of common shares	(2,312)		(746)
Proceeds from stock options exercised	69		103
Dividends paid	(1,660)		(1,603)
Net Cash From (Used in) Financing Activities	(4,636)		(2,231)
Effect of exchange rate changes on cash and cash equivalents	(77)		(28)
Net Increase (Decrease) in Cash and Cash Equivalents	(862)		1,820
Cash and Cash Equivalents, Beginning of Year	9,799		6,838
Cash and Cash Equivalents, End of Period	$	8,937	$	8,658

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

June 30, 2022

(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, 2021. The condensed consolidated financial statements include the accounts of the parent company and subsidiaries, after elimination of intercompany transactions.

Note 2 — 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.

The following tables provide detail by sales category:

	Three Months Ended June 30, 2022						Three Months Ended June 30, 2021
(in millions)	U.S.		Int’l		Total		U.S.		Int’l		Total
Established Pharmaceutical Products —
Key Emerging Markets	$	—	$	931	$	931	$	—	$	915	$	915
Other	—		292		292		—		265		265
Total	—		1,223		1,223		—		1,180		1,180
Nutritionals —
Pediatric Nutritionals	413		512		925		528		565		1,093
Adult Nutritionals	348		680		1,028		345		670		1,015
Total	761		1,192		1,953		873		1,235		2,108
Diagnostics —
Core Laboratory	287		934		1,221		283		1,023		1,306
Molecular	71		141		212		94		196		290
Point of Care	101		38		139		97		40		137
Rapid Diagnostics	2,010		740		2,750		681		833		1,514
Total	2,469		1,853		4,322		1,155		2,092		3,247
Medical Devices —
Rhythm Management	264		284		548		269		298		567
Electrophysiology	226		260		486		209		278		487
Heart Failure	179		62		241		168		59		227
Vascular	228		425		653		246		451		697
Structural Heart	207		233		440		191		231		422
Neuromodulation	157		40		197		166		44		210
Diabetes Care	399		793		1,192		289		767		1,056
Total	1,660		2,097		3,757		1,538		2,128		3,666
Other	2		—		2		15		7		22
Total	$	4,892	$	6,365	$	11,257	$	3,581	$	6,642	$	10,223

9

Abbott Laboratories and Subsidiaries

Notes to the Condensed Consolidated Financial Statements

June 30, 2022

(Unaudited)

Note 2 — Revenue (Continued)

	Six Months Ended June 30, 2022						Six Months Ended June 30, 2021
(in millions)	U.S.		Int’l		Total		U.S.		Int’l		Total
Established Pharmaceutical Products —
Key Emerging Markets	$	—	$	1,833	$	1,833	$	—	$	1,736	$	1,736
Other	—		537		537		—		514		514
Total	—		2,370		2,370		—		2,250		2,250
Nutritionals —
Pediatric Nutritionals	751		1,021		1,772		1,036		1,123		2,159
Adult Nutritionals	687		1,388		2,075		673		1,312		1,985
Total	1,438		2,409		3,847		1,709		2,435		4,144
Diagnostics —
Core Laboratory	555		1,850		2,405		554		1,934		2,488
Molecular	243		389		632		269		468		737
Point of Care	192		75		267		189		77		266
Rapid Diagnostics	4,220		2,084		6,304		1,784		1,986		3,770
Total	5,210		4,398		9,608		2,796		4,465		7,261
Medical Devices —
Rhythm Management	512		560		1,072		510		576		1,086
Electrophysiology	442		529		971		388		530		918
Heart Failure	346		116		462		313		108		421
Vascular	437		835		1,272		465		867		1,332
Structural Heart	397		454		851