Revenue

3 Months Ended

Mar. 31, 2023

Revenue from Contract with Customer [Abstract]

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.

The following tables provide detail by sales category:

	Three Months Ended March 31, 2023						Three Months Ended March 31, 2022
(in millions)	U.S.		Int’l		Total		U.S.		Int’l		Total
Established Pharmaceutical Products —
Key Emerging Markets	$	—	$	912	$	912	$	—	$	906	$	906
Other	—		277		277		—		241		241
Total	—		1,189		1,189		—		1,147		1,147
Nutritionals —
Pediatric Nutritionals	459		465		924		338		509		847
Adult Nutritionals	353		690		1,043		339		708		1,047
Total	812		1,155		1,967		677		1,217		1,894
Diagnostics —
Core Laboratory	289		893		1,182		268		916		1,184
Molecular	47		100		147		172		248		420
Point of Care	93		41		134		91		37		128
Rapid Diagnostics	906		319		1,225		2,181		1,344		3,525
Total	1,335		1,353		2,688		2,712		2,545		5,257
Medical Devices —
Rhythm Management	260		267		527		248		276		524
Electrophysiology	238		267		505		216		269		485
Heart Failure	218		63		281		196		54		250
Vascular	218		399		617		209		410		619
Structural Heart	210		251		461		190		221		411
Neuromodulation	155		41		196		143		36		179
Diabetes Care	479		834		1,313		343		783		1,126
Total	1,778		2,122		3,900		1,545		2,049		3,594
Other	3		—		3		3		—		3
Total	$	3,928	$	5,819	$	9,747	$	4,937	$	6,958	$	11,895

Note: The Acelis Connected Health business was internally transferred from Rapid Diagnostics to Heart Failure on January 1, 2023. As a result, $29 million of sales for the first quarter of 2022 were moved from Rapid Diagnostics to Heart Failure.

Remaining Performance Obligations

As of March 31, 2023, the estimated revenue expected to be recognized in the future related to performance obligations that are unsatisfied (or partially unsatisfied) was approximately $4.1 billion in the Diagnostics segment and approximately $450 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 17 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 FASB 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.

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, 2022	$	500
Unearned revenue from cash received during the period	122
Revenue recognized related to contract liability balance	(93)
Balance at March 31, 2023	$	529