Financial Instruments, Derivatives and Fair Value Measures (Tables)

6 Months Ended

Jun. 30, 2024

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, 2024 and December 31, 2023:

	Fair Value - Assets					Fair Value - Liabilities
(in millions)	June 30, 2024		December 31, 2023		Balance Sheet Caption	June 30, 2024		December 31, 2023		Balance Sheet Caption
Interest rate swaps designated as fair value hedges:
Non-current	$	—	$	—	Deferred income taxes and other assets	$	74	$	95	Post-employment obligations, deferred income taxes and other long-term liabilities
Current	—		—		Prepaid expenses and other receivables	17		—		Other accrued liabilities
Foreign currency forward exchange contracts:
Hedging instruments	161		88		Prepaid expenses and other receivables	21		134		Other accrued liabilities
Others not designated as hedges	49		81		Prepaid expenses and other receivables	36		97		Other accrued liabilities
Debt designated as a hedge of net investment in a foreign subsidiary	—		—		n/a	573		419		Long-term debt
	$	210	$	169		$	721	$	745

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, 2024 and 2023.

	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)	2024		2023		2024		2023		2024		2023		2024		2023		Income Statement Caption
Foreign currency forward exchange contracts designated as cash flow hedges	$	111	$	90	$	238	$	27	$	25	$	63	$	43	$	189	Cost of products sold
Debt designated as a hedge of net investment in a foreign subsidiary	23		38		47		33		—		—		—		—		n/a
Interest rate swaps designated as fair value hedges	n/a		n/a		n/a		n/a		28		(6)		4		3		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, 2024 and December 31, 2023 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, 2024				December 31, 2023
(in millions)	Carrying Value		Fair Value		Carrying Value		Fair Value
Long-term Investment Securities:
Equity securities	$	549	$	549	$	555	$	555
Other	328		328		244		244
Total Long-term Debt	(14,754)		(14,252)		(14,679)		(14,769)
Foreign Currency Forward Exchange Contracts:
Receivable position	210		210		169		169
(Payable) position	(57)		(57)		(231)		(231)
Interest Rate Hedge Contracts:
(Payable) position	(91)		(91)		(95)		(95)

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, 2024:
Equity securities	$	322	$	322	$	—	$	—
Foreign currency forward exchange contracts	210		—		210		—
Total Assets	$	532	$	322	$	210	$	—
Fair value of hedged long-term debt	$	2,056	$	—	$	2,056	$	—
Interest rate swap derivative financial instruments	91		—		91		—
Foreign currency forward exchange contracts	57		—		57		—
Contingent consideration related to business combinations	59		—		—		59
Total Liabilities	$	2,263	$	—	$	2,204	$	59
December 31, 2023:
Equity securities	$	326	$	326	$	—	$	—
Foreign currency forward exchange contracts	169		—		169		—
Total Assets	$	495	$	326	$	169	$	—
Fair value of hedged long-term debt	$	2,052	$	—	$	2,052	$	—
Interest rate swap derivative financial instruments	95		—		95		—
Foreign currency forward exchange contracts	231		—		231		—
Contingent consideration related to business combinations	112		—		—		112
Total Liabilities	$	2,490	$	—	$	2,378	$	112