Revenue

6 Months Ended

Jun. 30, 2024

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 June 30, 2024						Three Months Ended June 30, 2023
(in millions)	U.S.		Int’l		Total		U.S.		Int’l		Total
Established Pharmaceutical Products —
Key Emerging Markets	$	—	$	988	$	988	$	—	$	990	$	990
Other	—		306		306		—		297		297
Total	—		1,294		1,294		—		1,287		1,287
Nutritionals —
Pediatric Nutritionals	564		495		1,059		507		517		1,024
Adult Nutritionals	369		722		1,091		374		678		1,052
Total	933		1,217		2,150		881		1,195		2,076
Diagnostics —
Core Laboratory	327		1,002		1,329		311		982		1,293
Molecular	33		94		127		43		98		141
Point of Care	107		49		156		99		43		142
Rapid Diagnostics	345		238		583		508		233		741
Total	812		1,383		2,195		961		1,356		2,317
Medical Devices —
Rhythm Management	292		315		607		269		314		583
Electrophysiology	287		340		627		245		308		553
Heart Failure	244		77		321		226		69		295
Vascular	275		449		724		264		451		715
Structural Heart	258		306		564		219		279		498
Neuromodulation	192		51		243		185		42		227
Diabetes Care	637		1,011		1,648		505		919		1,424
Total	2,185		2,549		4,734		1,913		2,382		4,295
Other	4		—		4		3		—		3
Total	$	3,934	$	6,443	$	10,377	$	3,758	$	6,220	$	9,978

	Six Months Ended June 30, 2024						Six Months Ended June 30, 2023
(in millions)	U.S.		Int’l		Total		U.S.		Int’l		Total
Established Pharmaceutical Products —
Key Emerging Markets	$	—	$	1,916	$	1,916	$	—	$	1,902	$	1,902
Other	—		604		604		—		574		574
Total	—		2,520		2,520		—		2,476		2,476
Nutritionals —
Pediatric Nutritionals	1,078		990		2,068		966		982		1,948
Adult Nutritionals	733		1,417		2,150		727		1,368		2,095
Total	1,811		2,407		4,218		1,693		2,350		4,043
Diagnostics —
Core Laboratory	637		1,897		2,534		600		1,875		2,475
Molecular	75		181		256		90		198		288
Point of Care	205		90		295		192		84		276
Rapid Diagnostics	826		498		1,324		1,414		552		1,966
Total	1,743		2,666		4,409		2,296		2,709		5,005
Medical Devices —
Rhythm Management	563		606		1,169		529		581		1,110
Electrophysiology	556		658		1,214		483		575		1,058
Heart Failure	481		145		626		444		132		576
Vascular	529		884		1,413		482		850		1,332
Structural Heart	491		588		1,079		429		530		959
Neuromodulation	373		96		469		340		83		423
Diabetes Care	1,226		1,991		3,217		984		1,753		2,737
Total	4,219		4,968		9,187		3,691		4,504		8,195
Other	7		—		7		6		—		6
Total	$	7,780	$	12,561	$	20,341	$	7,686	$	12,039	$	19,725

Products sold by the Diagnostics segment include various types of diagnostic tests to detect the COVID-19 coronavirus. In the second quarter of 2024 and 2023, COVID-19 testing-related sales totaled $102 million and $263 million, respectively. In the first six months of 2024 and 2023, Abbott’s COVID-19 testing-related sales totaled $306 million and $993 million, respectively.

Remaining Performance Obligations

As of June 30, 2024, the estimated revenue expected to be recognized in the future related to performance obligations that are unsatisfied (or partially unsatisfied) was approximately $4.8 billion in the Diagnostics segment and approximately $493 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 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 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, 2023	$	545
Unearned revenue from cash received during the period	232
Revenue recognized related to contract liability balance	(233)
Balance at June 30, 2024	$	544