Revenue

9 Months Ended

Sep. 30, 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 September 30, 2023						Three Months Ended September 30, 2022
(in millions)	U.S.		Int’l		Total		U.S.		Int’l		Total
Established Pharmaceutical Products —
Key Emerging Markets	$	—	$	987	$	987	$	—	$	1,001	$	1,001
Other	—		381		381		—		325		325
Total	—		1,368		1,368		—		1,326		1,326
Nutritionals —
Pediatric Nutritionals	506		495		1,001		357		470		827
Adult Nutritionals	354		718		1,072		329		639		968
Total	860		1,213		2,073		686		1,109		1,795
Diagnostics —
Core Laboratory	317		997		1,314		281		938		1,219
Molecular	38		95		133		65		118		183
Point of Care	97		43		140		92		35		127
Rapid Diagnostics	561		301		862		1,273		839		2,112
Total	1,013		1,436		2,449		1,711		1,930		3,641
Medical Devices —
Rhythm Management	271		292		563		263		270		533
Electrophysiology	246		298		544		225		244		469
Heart Failure	217		67		284		207		51		258
Vascular	251		421		672		213		393		606
Structural Heart	223		264		487		207		213		420
Neuromodulation	188		39		227		156		36		192
Diabetes Care	544		928		1,472		423		744		1,167
Total	1,940		2,309		4,249		1,694		1,951		3,645
Other	4		—		4		3		—		3
Total	$	3,817	$	6,326	$	10,143	$	4,094	$	6,316	$	10,410

	Nine Months Ended September 30, 2023						Nine Months Ended September 30, 2022
(in millions)	U.S.		Int’l		Total		U.S.		Int’l		Total
Established Pharmaceutical Products —
Key Emerging Markets	$	—	$	2,889	$	2,889	$	—	$	2,853	$	2,853
Other	—		955		955		—		843		843
Total	—		3,844		3,844		—		3,696		3,696
Nutritionals —
Pediatric Nutritionals	1,472		1,477		2,949		1,108		1,491		2,599
Adult Nutritionals	1,081		2,086		3,167		1,016		2,027		3,043
Total	2,553		3,563		6,116		2,124		3,518		5,642
Diagnostics —
Core Laboratory	917		2,872		3,789		836		2,788		3,624
Molecular	128		293		421		308		507		815
Point of Care	289		127		416		284		110		394
Rapid Diagnostics	1,975		853		2,828		5,436		2,923		8,359
Total	3,309		4,145		7,454		6,864		6,328		13,192
Medical Devices —
Rhythm Management	800		873		1,673		775		830		1,605
Electrophysiology	729		873		1,602		667		773		1,440
Heart Failure	661		199		860		610		167		777
Vascular	733		1,271		2,004		650		1,228		1,878
Structural Heart	652		794		1,446		604		667		1,271
Neuromodulation	528		122		650		456		112		568
Diabetes Care	1,528		2,681		4,209		1,165		2,320		3,485
Total	5,631		6,813		12,444		4,927		6,097		11,024
Other	10		—		10		8		—		8
Total	$	11,503	$	18,365	$	29,868	$	13,923	$	19,639	$	33,562

Note: The Acelis Connected Health business was internally transferred from Rapid Diagnostics to Heart Failure on January 1, 2023. As a result, $30 million of sales in the third quarter of 2022 and $87 million in the first nine months of 2022 were moved from Rapid Diagnostics to Heart Failure.

Remaining Performance Obligations

As of September 30, 2023, the estimated revenue expected to be recognized in the future related to performance obligations that are unsatisfied (or partially unsatisfied) was approximately $4.2 billion in the Diagnostics segment and approximately $456 million in the Medical Devices segment. Abbott expects to recognize revenue on approximately 59 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 the 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 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	346
Revenue recognized related to contract liability balance	(292)
Balance at September 30, 2023	$	554