Taxes on Earnings

3 Months Ended

Mar. 31, 2023

Income Tax Disclosure [Abstract]

Taxes on Earnings

Note 13 — Taxes on Earnings

Taxes on earnings reflect the estimated annual effective rates and include charges for interest and penalties. In the first three months of 2023 and 2022, taxes on earnings include approximately $3 million and $30 million, respectively, in excess tax benefits associated with share-based compensation. In the first three months of 2023 and 2022, taxes on earnings also include approximately $22 million and $30 million, respectively, of tax expense as the 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 $75 million to $80 million, including cash adjustments, within the next twelve months as a result of concluding various domestic and international tax matters.