Financial Instruments, Derivatives and Fair Value Measures (Tables)

6 Months Ended

Jun. 30, 2023

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Summary of Amounts and Location of Derivative Financial Instruments

The following table summarizes the amounts and location of certain derivative and non-derivative financial instruments as of June 30, 2023 and December 31, 2022:

	Fair Value - Assets					Fair Value - Liabilities
(in millions)	June 30, 2023		December 31, 2022		Balance Sheet Caption	June 30, 2023		December 31, 2022		Balance Sheet Caption
Interest rate swaps designated as fair value hedges:
Non-current	$	—	$	—	Deferred income taxes and other assets	$	142	$	136	Post-employment obligations, deferred income taxes and other long-term liabilities
Current	—		—		Prepaid expenses and other receivables	11		20		Other accrued liabilities
Foreign currency forward exchange contracts:
Hedging instruments	147		304		Prepaid expenses and other receivables	129		96		Other accrued liabilities
Others not designated as hedges	78		108		Prepaid expenses and other receivables	62		130		Other accrued liabilities
Debt designated as a hedge of net investment in a foreign subsidiary	—		—		n/a	413		446		Long-term debt
	$	225	$	412		$	757	$	828

Schedule of Derivatives Gain (Loss) in OCI and Income (Expense)

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, 2023 and 2022.

	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)	2023		2022		2023		2022		2023		2022		2023		2022		Income Statement Caption
Foreign currency forward exchange contracts designated as cash flow hedges	$	90	$	141	$	27	$	92	$	63	$	43	$	189	$	70	Cost of products sold
Debt designated as a hedge of net investment in a foreign subsidiary	38		54		33		84		—		—		—		—		n/a
Interest rate swaps designated as fair value hedges	n/a		n/a		n/a		n/a		(6)		(47)		3		(168)		Interest expense

Schedule of Carrying Values and Fair Values of Financial Instruments

The carrying values and fair values of certain financial instruments as of June 30, 2023 and December 31, 2022 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, 2023				December 31, 2022
(in millions)	Carrying Value		Fair Value		Carrying Value		Fair Value
Long-term Investment Securities:
Equity securities	$	574	$	574	$	558	$	558
Other	225		225		208		208
Total Long-term Debt	(16,846)		(16,555)		(16,773)		(16,313)
Foreign Currency Forward Exchange Contracts:
Receivable position	225		225		412		412
(Payable) position	(191)		(191)		(226)		(226)
Interest Rate Hedge Contracts:
Receivable position	—		—		—		—
(Payable) position	(153)		(153)		(156)		(156)

Summary of Bases Used to Measure Assets and Liabilities 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, 2023:
Equity securities	$	315	$	315	$	—	$	—
Foreign currency forward exchange contracts	225		—		225		—
Total Assets	$	540	$	315	$	225	$	—
Fair value of hedged long-term debt	$	2,697	$	—	$	2,697	$	—
Interest rate swap derivative financial instruments	153		—		153		—
Foreign currency forward exchange contracts	191		—		191		—
Contingent consideration related to business combinations	84		—		—		84
Total Liabilities	$	3,125	$	—	$	3,041	$	84
December 31, 2022:
Equity securities	$	307	$	307	$	—	$	—
Foreign currency forward exchange contracts	412		—		412		—
Total Assets	$	719	$	307	$	412	$	—
Fair value of hedged long-term debt	$	2,691	$	—	$	2,691	$	—
Interest rate swap derivative financial instruments	156				156
Foreign currency forward exchange contracts	226		—		226		—
Contingent consideration related to business combinations	130		—		—		130
Total Liabilities	$	3,203	$	—	$	3,073	$	130