XML 43 R26.htm IDEA: XBRL DOCUMENT v3.24.0.1
Segment and Geographic Area Information
 12 Months Ended
Dec. 31, 2023
Segment Reporting [Abstract]  
Segment and Geographic Area Information Segment and Geographic Area Information
Abbott’s principal business is the discovery, development, manufacture and sale of a broad line of health care products. Abbott’s products are generally sold directly to retailers, wholesalers, hospitals, health care facilities, laboratories, physicians’ offices and government agencies throughout the world.
Abbott’s reportable segments are as follows:
Established Pharmaceutical Products—International sales of a broad line of branded generic pharmaceutical products.
Nutritional Products—Worldwide sales of a broad line of adult and pediatric nutritional products.
Diagnostic Products—Worldwide sales of diagnostic systems and tests for blood banks, hospitals, commercial laboratories and alternate-care testing sites. For segment reporting purposes, the Core Laboratory Diagnostics, Rapid Diagnostics, Molecular Diagnostics and Point of Care Diagnostics businesses are aggregated and reported as the Diagnostic Products segment.
Medical Devices—Worldwide sales of rhythm management, electrophysiology, heart failure, vascular, structural heart, neuromodulation and diabetes care products. For segment reporting purposes, the Cardiac Rhythm Management, Electrophysiology, Heart Failure, Vascular, Structural Heart, Neuromodulation and Diabetes Care divisions are aggregated and reported as the Medical Devices segment.
Abbott’s underlying accounting records are maintained on a legal entity basis for government and public reporting requirements. Segment disclosures are on a performance basis consistent with internal management reporting. The cost of some corporate functions and the cost of certain employee benefits are charged to segments at predetermined rates that approximate cost. Remaining costs, if any, are not allocated to segments. In addition, intangible asset amortization is not allocated to operating segments, and intangible assets and goodwill are not included in the measure of each segment’s assets.
The following segment information has been prepared in accordance with the internal accounting policies of Abbott, as described above, and are not presented in accordance with generally accepted accounting principles applied to the consolidated financial statements.
Net Sales to External Customers (a)Operating Earnings (a)
(in millions)202320222021202320222021
Established Pharmaceutical Products$5,066 $4,912 $4,718 $1,206 $1,049 $889 
Nutritional Products8,154 7,459 8,294 1,333 706 1,763 
Diagnostic Products (b)9,988 16,469 15,526 2,433 6,640 6,237 
Medical Devices (b)16,887 14,802 14,485 5,306 4,436 4,533 
Total Reportable Segments40,095 43,642 43,023 $10,278 $12,831 $13,422 
Other14 11 52 
Total$40,109 $43,653 $43,075 
________________________________________________________
(a)In 2023 and 2022, foreign exchange unfavorably impacted net sales and operating earnings. In 2021, foreign exchange favorably impacted net sales and unfavorably impacted operating earnings.
(b)2022 and 2021 Sales and Operating Earnings for the Diagnostic Products and Medical Devices reportable segments have been updated to reflect the internal transfer of the Acelis Connected Health business from Diagnostic Products to Medical Devices on January 1, 2023.
(in millions)202320222021
Total Reportable Segment Operating Earnings$10,278 $12,831 $13,422 
Corporate functions and benefit plan costs(308)(509)(801)
Net interest expense(252)(375)(490)
Share-based compensation(644)(685)(640)
Amortization of intangible assets(1,966)(2,013)(2,047)
Other, net (c)(444)(943)(1,233)
Earnings before Taxes$6,664 $8,306 $8,211 
_______________________________________________________
(c)
Other, net includes costs directly related to integrating acquired businesses and restructuring charges in 2023, 2022, and 2021. Charges and expenses for restructuring actions and other cost reduction initiatives were approximately $122 million in 2023, $265 million in 2022, and $375 million in 2021. Other, net in 2023 also includes charges of $100 million related to indefinite-lived intangible asset impairments, partially offset by income arising from fair value changes in contingent consideration related to previous business acquisitions. Other, net in 2022 also includes $176 million of charges related to a voluntary recall within the Nutritional products segment and $111 million of charges related to the impairment of IPR&D intangible assets. Other, net in 2021 also includes costs related to certain litigation.
DepreciationAdditions to
Property and Equipment (d)		Total Assets
(in millions)202320222021202320222021202320222021
Established Pharmaceuticals$104 $97 $94 $185 $175 $169 $3,118 $2,883 $2,789 
Nutritionals155 155 151 457 251 174 4,270 3,625 3,425 
Diagnostics499 494 760 750 832 980 7,767 7,985 7,699 
Medical Devices315 311 285 604 335 348 9,029 7,844 7,261 
Total Reportable Segments1,073 1,057 1,290 1,996 1,593 1,671 $24,184 $22,337 $21,174 
Other204 197 201 213 182 201 
Total$1,277 $1,254 $1,491 $2,209 $1,775 $1,872 
(in millions)20232022
Total Reportable Segment Assets$24,184 $22,337 
Cash and investments8,078 10,936 
Goodwill and intangible assets32,494 33,253 
All other (e)8,458 7,912 
Total Assets$73,214 $74,438 
________________________________________________________
(d)Amounts exclude property, plant and equipment acquired through business acquisitions.
(e)
All other includes the long-term assets associated with the defined benefit plans of $4.16 billion in 2023 and $3.20 billion in 2022.
Net Sales to External
Customers (f)
(in millions)202320222021
United States$15,452 $18,142 $16,642 
Germany2,345 2,340 2,572 
China2,253 2,133 2,392 
India1,750 1,649 1,561 
Switzerland1,638 1,336 1,313 
Japan1,513 1,932 1,695 
Netherlands1,074 1,111 1,174 
All Other Countries14,084 15,010 15,726 
Consolidated$40,109 $43,653 $43,075 
________________________________________________________
(f)Sales by country are based on the country that sold the product.
Long-lived assets on a geographic basis primarily include property and equipment. It excludes goodwill, intangible assets, deferred tax assets, and financial instruments. At December 31, 2023 and 2022, long-lived assets totaled $16.2 billion and $14.2 billion, respectively, and in the United States such assets totaled $8.9 billion and $7.7 billion, respectively. Long-lived asset balances associated with other countries were not material on an individual country basis in either of the two years.