2023 Abbott Annual Report

2023 ANNUAL REPORT
Throughout our long history, we TABLE OF CONTENTS

have continually reinvented Abbott to
1 Letter to Shareholders
meet the needs of every age and stage of
5 Abbott 2023
a person’s life, innovating to create
6 From Data to Decisions
leading-edge technologies that empower
8 Laboratory Diagnostics
individuals to take ever-increasing
10 Rapid Diagnostics
control over their own health.
12 Vascular
14 Electrophysiology
We believe the best medical products
16 From Insight to Innovation
are those that help the most people.
18 Structural Heart
With a focus on maximizing broad access
20 Neuromodulation
and affordability across our businesses —
22 Heart Failure Management
nutrition, medicines, medical devices,
24 Cardiac Rhythm Management
and diagnostics — we’re working to help
26 From Engagement to Empowerment
more people in more places meet their
28 Medicines
most urgent healthcare needs.
30 Nutrition
32 Diabetes Care
In a constantly evolving environment
34 The Future in Fast Forward
that requires visionary leadership,
36 Financial Report
we are well-positioned to continue
delivering long-term, sustainable growth
and shareholder returns.
Front Cover:
ZULEYMA SANTOS
LOS ANGELES, CALIFORNIA, USA
HEARTMATE 3
Zuleyma relies on Abbott’s

HeartMate 3 Left Ventricular
Assist Device, a mini heart
pump for patients in advanced-
stage heart failure.
ROBERT FORD
Chairman of the Board and
Chief Executive Officer
DEAR FELLOW SHAREHOLDER:
2023 was the year we’ve been working toward.

With all four of our major businesses again delivering
consistently strong performance, Abbott accelerated
its base-business growth and its momentum. In our
135th anniversary year, Abbott again demonstrated the
resilience, the creativity, and the commitment needed
to meet the challenges of the present and the vast
potential of the future of healthcare.
ABBOT T 2023 ANNUAL REP ORT
Base-business RESILIENCE
The key to Abbott’s successful 2023
Our balanced success in 2023 led
to excellent financial results for the
growth continued was balance. With supply chains and year, with both sales and earnings
exceeding the expectations we
the volume of hospital procedures
in 2023 largely returned to normal after the shared at the beginning of the year.
disruptions of COVID-19, our base-
business growth accelerated from its Sales were $40.1 billion, which
pre-pandemic rate. reflects an increase of 11.6% on an
11.6%
* organic basis for the base business.*
The year clearly demonstrated the Adjusted diluted earnings per share
value of our diversified business were $4.44**, above the midpoint of
BASE-BUSINESS our original guidance range.
strategy. Our broad range of
ORGANIC
therapeutic areas, products,
SALES GROWTH In December we announced a
and technologies gives Abbott a
unique and differentiated view dividend increase of 7.8 percent
of healthcare, providing us more for 2024. Abbott recently paid
insights, access, and opportunities. its 400th consecutive quarterly
It allows us to see interconnectivity dividend, completing a full century
across the spectrum of healthcare, of uninterrupted returns to
which gives us greater ability to shareholders. And our dividends
have risen in each of the last 52 years,
Our diversified see around corners and anticipate
developing trends and needs. And earning Abbott membership in the
business mix the breadth and depth of our product

portfolio gives Abbott both defensive
exclusive ranks of Dividend Kings.
delivered another strength with the ability to balance

challenges in one business with
We’re focused on returning our gross
margin to historic levels to allow us
strong year overperformance in another, and
offensive strength with more ways
to increase investment in our new-
product pipeline, in building our
to win. market presence, and in the broad
range of opportunities before us.
At the root of Abbott’s resilience is
$40.1B
our culture, which is every bit as CREATIVITY
real an asset as the more tangible Resilience requires the ability to
ones. Over its generations of adapt, adjust, and evolve at speed
WORLDWIDE success, Abbott has thrived through — in other words, creativity. Abbott
SALES all manner of challenges from people bring creative problem
our business environment. That solving to every aspect of our
experience has tempered us as an operations; but our creative energy
organization. We know how to meet is most focused and systematized in
such situations because we’ve done our innovation of new products and
so time and again, and we’ve built technologies. The results here have
the company accordingly for long- been outstanding.
term durability.
$4.44
**
Financial Performance
ADJUSTED Investments made at the peak
DILUTED EPS of COVID-19 testing sales have
positioned us for sustainable growth,
making us stronger today than at the
beginning of the pandemic.
* On a GAAP basis, full-year 2023 Abbott sales decreased 8.1%
** Full-year 2023 GAAP diluted EPS was $3.26
For full financial data and reconciliation of non-GAAP measures, please
see Abbott’s 2023 earnings releases at www.abbottinvestor.com
2
PIPELINE Pipeline Productivity Putting AI to Work

HIGHLIGHTS In 2023, we continued to introduce 2023 was, of course, the year that
a robust stream of important new generative artificial intelligence
healthcare products. These included: exploded into the public
consciousness with the arrival of
• Alinity TBI, a laboratory test for compelling, popular language and
concussion visual tools. Forms of AI and machine
• Alinity h, an integrated hematology learning have been employed in
Navitor system for advanced testing of healthcare for some time; but 2023
Transcatheter Aortic Valve complete blood counts marked the crossing of an important
Replacement threshold in the sophistication and
• Alinity m high risk HPV, a new test for perception of the technology as well
HPV detection and for use in routine as the scope of its consumer potential.
cervical cancer screening
• Assert-IQ, a Bluetooth®-enabled Abbott is already well versed in
insertable cardiac monitor that AI and employs it in multiple
provides industry-leading accuracy applications. For instance, Ultreon,
TriClip
for the long-term monitoring of our newest OCT (optical coherence
Transcatheter
Tricuspid Valve Repair heart rhythms tomography) imaging system, uses AI
to automatically analyze key patient
• Aveir DR, the world’s first dual
metrics to help optimize procedures.
chamber, leadless pacemaker, a
And we’ve used our vast body of
breakthrough in pacing technology
clinical trial data on our XIENCE
• The cardiovascular medicines RefSav drug-eluting stents to create machine-
in India and Omacor in China learning models for individual
PROTALITY • Eterna SCS, the smallest implantable, risk prediction.
Nutrition Shake for rechargeable spinal cord stimulator
Muscle Mass on the market As generative AI tools rapidly evolve
in capability, we’re forming teams
• GLP systems Track, our innovative
across our businesses to understand
total laboratory automation solution,
the ways in which they can make a
which was launched in the U.S.
positive difference in our work. We’ve
• Lingo, our new consumer identified three major categories of
biowearable device use for artificial intelligence that we
i-STAT TBI
• The expansion of our position in believe will have meaningful impact
Handheld Test
for Concussion biosimilar medicines through the on healthcare; Abbott has expertise
launch of Rytuzeq in Colombia and and existing positions in all three:
Central America for treatment of
cancers of the white blood system • In diagnosis, generative AI will
allow us to identify conditions faster,
• Navitor, our next-generation
earlier, and more accurately. The
transcatheter aortic valve
analysis of healthcare’s huge data sets
implantation (TAVI) system to
Aveir DR can guide truly personalized care —
treat aortic stenosis
Dual-Chamber Leadless moving from reporting on populations
Pacemaker • PediaSure 10+, Abbott’s first nutrition to giving physicians actionable
shake developed specifically for insights for individuals. We’ll see
children aged 10-15 years AI-based systems helping to review
• PROTALITY, a nutritional designed and analyze medical histories and
to help the growing number of patient records. And the data sets they
adults interested in maintaining generate will be processed to identify
muscle mass patterns that help predict and reduce
Lingo
serious health issues, particularly
Consumer Biowearable • TactiFlex, our new ablation catheter to through earlier intervention.
help treat abnormal heart rhythms
3
Consistently • In treatment, it will have the same

kind of impact on the discovery of
COMMITMENT
The reason Abbott has been so
strong new therapeutics — from med-tech
to pharma to nutrition — making
successful for so long is clear: our
purpose as a company inspires
shareholder the process vastly more efficient. extraordinary commitment from our
Generative AI can more rapidly
returns explore hypotheses, examine
colleagues around the world. Abbott
people care that their work means so
alternatives, and play out scenarios, much to those we serve. Our products
resulting in more and better products, help people live fuller lives. That
faster and more effectively. It can matters to us, deeply.
help us build models to predict which
100 patients may have better outcomes

with one therapy versus another, or
Our driving ambition today is to help
three billion people with Abbott
CONSECUTIVE tailor treatment to a patient’s personal products and services every year by
YEARS OF anatomy, disease, and characteristics. 2030. It’s an ambitious goal — the
DIVIDENDS PAID And it will continue to advance how kind that inspires people to achieve
we conduct clinical studies — from more than they thought they could.
pre-trial planning, to participant Reaching one-third of the people on
identification and management, the planet starts with the way
to trial surveillance — helping us we create our products. We aim
increase diversity in clinical trials, to expand access to healthcare by
which will improve outcomes and making it easier to use, more available,
increase health equity. and more affordable. And this
• And it will help us to significantly customer-centric perspective extends
50+ improve consumer empowerment.

AI will not only allow us to engage
to every part of the company. We’ve
adopted design principles to build
CONSECUTIVE more deeply with the people who use this thinking into every stage of the
YEARS OF RISING our products, but it will also let them product process, from invention, to
DIVIDENDS do so with their caregivers. This can supply chain, to production.
improve their adherence to treatment,
resulting in better outcomes. And, And people driven by a noble
most importantly, it can provide purpose — supported and propelled
consumers greater power in an area by a culture of achievement — can
where they’ve traditionally had too accomplish great things. Healthcare
little, allowing users to personalize not only inspires that kind of
and manage their health and care. greatness, it demands it. At Abbott,
we know that our products aren’t just
~80% We expect generative AI to help

us accelerate our work to digitize,
products, and our work is not just
a job. For 135 years, we’ve had the
DIVIDEND decentralize, and democratize privilege of purpose. That’s a legacy
INCREASE healthcare, enabling our customers we mean to preserve, a standard we
SINCE 2018 to receive the care they need, intend to meet, and a commitment you
when and where they need it, and can count on.
allowing Abbott to help more people
than ever before. Abbott Proud,
ROBERT B. FORD
Chairman of the Board
and Chief Executive Officer
March 4, 2024
4
Abbott 2023
With strong organic growth across our company’s
base businesses, Abbott’s performance is proof
of the power of our broadly diversified business.
With visibility to the entire spectrum of
healthcare, we see trends early, then focus on
investing and innovating to position our company
for leadership and impact over the long term.
5
T H E F U T U R E O F H E A LT H C A R E
From data
to decisions
Abbott technologies give INSIGHTS IN REAL TIME
Using AI and machine learning to build and
physicians data and insights analyze massive data sets, Abbott can help
physicians quickly identify and implement
to enable faster and the optimal approach to care, streamlining
more accurate diagnosis. treatment and improving outcomes.
We’re exploring how we can PREDICTIVE POTENTIAL

We envision a future in which smaller, smarter
combine artificial intelligence devices will generate data that can be used
to identify patterns, helping to predict and
with Abbott diagnostics reduce serious health issues through earlier
interventions.
and technology leadership
to transform our impact on TRANSFORMATIVE IMPACT
The integration of multiple data streams —
human health. to both patients and providers — will give
them the opportunity to benefit from the data
they produce from their devices, and will help
Abbott understand how that information can
be used to improve care.
6
Ultreon, Abbott’s first-of-its-kind imaging

software, merges optical coherence tomography
(OCT) — an imaging technology that provides
a comprehensive view inside an artery or blood
vessel — with the power of AI to enhance the
precision of physicians’ decision-making during
coronary stenting procedures.
7
Laboratory Abbott offers customized,

scalable solutions to
Diagnostics
help laboratories improve
throughput, accuracy,
and productivity
in diagnostic labs.
ALINITY S
Purpose-built for
blood and plasma
screening, this
transformational
innovation helps
labs achieve
greater operational
efficiency.
Abbott is a market leader in diagnostic tests, AlinIQ, Abbott’s suite of digital health solutions, helps
instruments, and informatics systems. Our products labs uncover intelligent insights from the data they
deliver crucial information to help guide decision generate and discover greater operational productivity
making for hundreds of health conditions — from with existing resources.
heart attacks to blood disorders to infectious diseases
and cancers. And Abbott remains the global leader in systems
and tests used to screen donated blood. Following a
Our Alinity portfolio of harmonized diagnostic systems pandemic-influenced slowdown, our blood-screening
includes the Alinity ci series, which integrates clinical business delivered solid growth in 2023. Today, Abbott
chemistry and immunoassay testing to help maximize systems and tests screen more than 50% of the world’s
its operational efficiency. In 2023, the Alinity i test blood and plasma supply.
menu had a notable expansion with U.S. clearance for
the first commercially available lab-based blood Alinity s, which was purpose-built for blood and
test to help evaluate concussion. We also launched plasma screening, allows laboratory staff to process
the Alinity h series, for advanced testing of patients’ more samples with less effort, greater consistency, and
complete blood counts. increased control, leading to a more productive blood-
and plasma-screening process.
8
SIES HEALTH
BOGOTÁ, COLOMBIA
Abbott Alinity systems have been

key to the efficient expansion of core
laboratory diagnostics services at
SIES Salud Health System, a leading
healthcare provider in Colombia.
ABBOTT
IS A MARKET
LEADER IN
DIAGNOSTIC
TESTS,
INSTRUMENTS,
AND
INFORMATICS
SYSTEMS.
9
Rapid
Diagnostics
Abbott is working to
ensure diagnostic testing is
available wherever people
need care.
LEADING GLOBAL MARKET-LEADING

PROVIDER OF TESTS FOR HIV
RAPID, POINT-OF- AND RESPIRATORY
CARE TESTS ILLNESS
Abbott is an industry leader in at-home and point- In our point-of-care testing portfolio, the installed
of-care testing solutions for both consumers and base of our ID NOW benchtop analyzer has increased
healthcare providers. more than fivefold since 2019, accelerating Abbott’s
strategy to decentralize testing. We are working
Abbott’s BinaxNOW and Panbio COVID-19 tests to expand the test menu for this system to increase
have been used almost 3 billion times around the world utilization beyond COVID-19 and flu testing.
since their development in 2020. Another rapid test, our
Panbio HIV Self Test, empowers people to proactively This portfolio also includes Piccolo Express, the only
know their HIV status and live fuller lives through portable diagnostic analyzer to offer a full complement
earlier diagnosis and treatment. of CLIA-waived blood chemistry tests at the point of
care; Afinion 2, a compact, rapid, multi-assay analyzer;
Our i-STAT TBI plasma test, the first rapid handheld and the Cholestech LDX analyzer, which empowers
traumatic brain injury blood test, will help clinicians healthcare professionals and patients with a lab-
assess individuals with suspected mild TBIs, including accurate complete lipid profile and glucose level in
concussions. Test results are available within 15 minutes just five minutes per test cassette.
after plasma is placed in the test cartridge.*
10 * i-STAT TBI plasma test is not intended for use as a point-of-care device.
LUCAS RANIEL
SÃO PAULO, BRAZIL
PANBIO HIV
Lucas, an influencer and
activist, works to help
others better understand
what it’s like to live a full
life while HIV-positive.
In his outreach work, he
recommends that people
regularly check their
HIV status with Abbott’s
Panbio HIV.
ID NOW PANBIO HIV

SELF TEST
Our benchtop
molecular analyzer Simple-to-use
offers reliable, home test lets
rapid results, people know their
giving healthcare HIV status in just
professionals 15 minutes.
information they need
to make faster, more
effective treatment
decisions.
11
Vascular
Expanding our
comprehensive portfolio
of devices to optimize
vascular interventions.
EUNICE GIVENS
FORT WORTH, TEXAS, USA
ESPRIT BTK
Eunice participated in a clinical trial

for Abbott’s investigational Esprit BTK
bioresorbable scaffold system, which is
currently being evaluated by the U.S.
FDA as a treatment for people with
chronic limb-threatening ischemia.*
In addition to our broad portfolio of market-leading Abbott is working to expand this portfolio with the
stents, Abbott provides diagnostic and imaging devices, Esprit BTK (below the knee) everolimus eluting
cutting-edge thrombectomy and atherectomy systems, resorbable scaffold system, which is currently being
and a full line of vessel-closure devices. evaluated by the FDA as a treatment for people with
chronic limb-threatening ischemia.
Our OPTIS Imaging Systems use optical coherence
tomography to deliver hundreds of micron-level Our JETi hydrodynamic thrombectomy system uses
resolution images of the artery. These images are then a uniquely positioned high-pressure saline jet to
analyzed by our AI-powered Ultreon 2.0 imaging and fragment clots within the safety of the catheter tip
physiology software, which provides insights to help while reducing catheter clogs.
doctors better assess arterial blockages and optimize
treatment decisions. In April 2023, Abbott completed our acquisition of
Cardiovascular Systems, Inc., adding CSI’s leading
Our XIENCE family of stents includes our next- atherectomy system, Diamondback 360, which prepares
generation XIENCE Skypoint, which allows physicians vessels for angioplasty or stenting to restore blood flow.
to treat larger blood vessels and longer lesions.
12 *CAUTION: Investigational device. Limited by Federal (U.S.) law to investigational use only.
ULTREON
VASCULAR
IMAGING
SYSTEM
Ultreon Software is
our new-generation
intravascular imaging
and coronary
physiology software
to guide percutaneous
coronary intervention.
ESPRIT BTK
Abbott’s investigational drug-
eluting Esprit BTK resorbable
scaffold is made of dissolving
material that is designed to
disappear over time after it has
opened a clogged artery.
DIAMONDBACK 360
Atherectomy system to prepare vessels
for stenting or angioplasty
13
Electrophysiology
A growing portfolio of cutting-edge
technologies for the precision treatment
of atrial fibrillation.
14
Abbott has helped fuel the strong growth of our Electrophysiology

DR. KENT NILSSON business with innovative additions to our portfolio of devices that
analyze and treat abnormal heart rhythms.
AND DR. DANIEL
HAITHCOCK Atrial fibrillation (AFib) is the most common type of arrhythmia,
ATHENS, GEORGIA, USA or irregular heartbeat, impacting more than 37 million people, a
number that is expected to grow to more than 60 million by 2050.
Dr. Nilsson (left) and
Dr. Haithcock (right) rely on Abbott devices, from implantable monitors to sophisticated
Abbott’s EnSite X mapping mapping systems, generate complex data sets that help doctors
system to guide them in more effectively treat this condition. Our Advisor HD Mapping
delivering cardiac ablation Catheter uses a first-of-its-kind electrode configuration to
therapy to their patients.
create more-highly detailed maps of the heart. Our best-in-class
cardiac-mapping system, EnSite X, allows doctors to diagnose
a wide range of arrhythmias. EnSite X features a screen that
displays 3D images of the heart and its activity in real time,
helping a doctor find the specific tissue that’s causing the heart
to beat irregularly.
Our TactiFlex ablation catheter, Sensor Enabled, is the world’s first

ablation catheter designed with a unique flexible electrode tip and
contact-force sensing.
ENSITE X SYSTEM
Next-generation 3D
mapping platform
TACTIFLEX ABLATION
CATHETER
First-of-its-kind catheter with
unique flexible tip
15
From insight
to innovation
Abbott uses leading-edge BROADER BUSINESS, DEEPER INSIGHTS
As one of the most diverse companies in
tools to streamline and healthcare, Abbott has a unique perspective
that gives us insights into the health challenges
accelerate clinical research people face at every stage of life. This cross-
and product development, disciplinary knowledge informs our development

process, helping us create products to transform
helping us expand our the standard of care.
broad portfolio of new, ACCELERATING THE ABBOTT PIPELINE

Abbott’s global presence and extensive
life-changing solutions. experience conducting clinical trials let us
collect vast amounts of data, then use that
information to both improve existing products
and create entirely new solutions.
EFFECTIVE PRODUCT LAUNCHES

Abbott’s demonstrated commitment to
outstanding commercial execution helps
ensure that the benefits of our innovations
are available more quickly, to more people,
in more places.
16
NeuroSphere Virtual
Clinic connects doctors
remotely with their
patients to interact
and make real-time
adjustments to
Abbott devices that
treat chronic pain or
movement disorders.
17
Structural Heart
Improving outcomes with a broad portfolio
of innovative, minimally invasive devices.
TRICLIP G4 SYSTEM NAVITOR TAVI SYSTEM AMPLATZER AMULET

Next-generation Transcatheter aortic valve Left-atrial-appendage
transcatheter edge-to- implantation system delivers occluder is designed to
edge repair system for precise, stable deployment and reduce the risk of ischemic
leaky tricuspid valves. excellent procedural outcomes, stroke caused by atrial
and is designed for lifetime fibrillation.
patient management.
18
JAVIER VILLARROYA
BOADILLA DEL MONTE, SPAIN
TRICLIP TEER
To treat his mitral valve disease, Javier had an

Abbott Masters mitral valve implanted at a young
age. When his doctors told him that his tricuspid
valve needed repairing, he told them he would
prefer they use an Abbott product. His heart team
was already in agreement on his treatment and
they implanted Abbott’s TriClip.
Abbott has the most comprehensive Structural Heart Our transcatheter aortic valve implantation (TAVI)
treatment portfolio in the industry. Our broad array of and surgical valve portfolios are designed to maximize
minimally invasive treatment options is supported by key clinical outcomes and the possibilities for patient
data showing that our devices are safe, effective, durable, lifetime management of their heart-valve disease.
and deliver the best clinical outcomes for patients.
Navitor, Abbott’s latest-generation TAVI system, was
TriClip, approved in more than 50 countries,* is a first- approved by the FDA in January 2023. It features
of-its-kind minimally invasive transcatheter edge-to- advancements to reduce the risk of blood leakage
edge repair (TEER) device specifically designed to treat around the implant.
tricuspid regurgitation, or a leaky tricuspid valve.
The Epic Max aortic stented tissue valve is designed
Our MitraClip is the world’s first minimally invasive to help patients with more complex cases of aortic
TEER therapy for both primary and secondary mitral regurgitation or stenosis who cannot take blood-
regurgitation. thinning medications.
* Investigational device in the U.S. 19

Neuromodulation
Advanced technologies for improving care
for movement disorders and chronic pain.
JILL SOBULE
NEW YORK, NEW YORK, USA
INFINITY DBS SYSTEM INFINITY DBS
Deep brain stimulation system
Jill, a successful singer-
for people with Parkinson’s or
songwriter, had lived with
essential tremor. essential tremor for years.
Then, in 2020, she noticed
that what she had described
in a song as her “shaky
hands” were getting worse,
impeding her ability to play
the guitar. A consultation
with her neurologist resulted
in Jill receiving Abbott’s
Infinity DBS (deep brain
stimulation) system, calming
her tremor and restoring
her ability to play.
ETERNA SCS SYSTEM
With Xtend energy
technology and BurstDR
stimulation
20
Abbott is a global leader in the development of chronic- energy toward all major therapeutic targets for both
pain therapy solutions. Our unique portfolio includes conditions while reducing stimulation to areas that may
radiofrequency ablation, spinal cord stimulation (SCS) create side effects.
technologies, including BurstDR stimulation, and dorsal
root ganglion (DRG) stimulation for the treatment of Our first-of-its-kind NeuroSphere Virtual Clinic lets
chronic pain. doctors remotely reprogram a patient’s implant via
a secure video chat integrated into our NeuroSphere
In 2023, Abbott expanded its Pain Management digital health ecosystem.
portfolio with the launch of Eterna, the world’s smallest
implantable, rechargeable SCS system. Eterna is For our pain-management devices, Abbott’s
designed to optimize the charging experience, requiring NeuroSphere myPath connected-care app stores
as few as five recharges per year under standard use data that helps people objectively evaluate SCS or
from a wireless charger. DRG therapy as they’re trying a new device. With
myPath, doctors have better visibility to patients’
For movement disorders, such as Parkinson’s disease collected outcomes, helping them have better informed
and essential tremor, Abbott’s Infinity DBS system discussions as they craft treatment plans.
employs a directional lead that’s capable of sending
21
Heart Failure
Management
Solutions for every stage
of heart failure, from the earliest
to the most advanced.
22
HEARTMATE 3 CARDIOMEMS
HF SYSTEM
Abbott’s paper-
clip-sized device
can alert doctors
to worsening heart
failure before
symptoms arise.
CENTRIMAG CIRCULATORY
SUPPORT SYSTEM
ZULEYMA SANTOS Blood-pumping system
LOS ANGELES, CALIFORNIA, USA used to support
HEARTMATE 3 patients with acute heart
and lung failure.
Because of a naturally high antibody count, there’s
a higher risk that Zuleyma’s body would reject a
transplanted heart. That’s why her doctors chose
to implant Abbott’s HeartMate 3 LVAD. Thanks to
its constant assistance, Zuleyma can get back to
her daily activities and be the mom she wants to
be for her kids.
Abbott’s industry-leading portfolio of solutions includes These devices can communicate with Abbott’s
diagnostics, devices, data, and analytics that can help Merlin@home system to facilitate efficient remote care
physicians and hospitals manage heart failure more management of patients, complementing or replacing
holistically for the nearly 26 million people around the in-clinic visits with remote patient transmissions.
world who suffer from it.
Our HeartMate 3 is a left-ventricular assist device
Our CardioMEMS HF System is a pulmonary artery (LVAD) — a mini heart pump for patients in advanced-
pressure monitoring system that provides early stage heart failure. HeartMate 3 uses Full MagLev
detection of worsening heart failure. By continuously flow technology, which suspends the pump rotor with
generating data that can be shared with the patient’s magnetic force, reducing trauma to the blood as it
care team, CardioMEMS can help prevent worsening passes through the pump.
heart failure, which lowers mortality rates and
improves quality of life. Our CentriMag circulatory support system was a life-
saving option for thousands of patients who required
Our cardiac resynchronization therapy is a proven respiratory and circulatory support during the
clinical treatment for heart failure management. COVID-19 pandemic. In 2023, CentriMag was approved
by the FDA for longer-term life support.
23
Cardiac Rhythm
Management
Building on our leadership
with innovative new solutions
for managing abnormal
heart rhythms.
AVEIR DR
World’s first
dual-chamber
leadless
pacemaker.
24
Abbott’s Cardiac Rhythm Management business are setting the standard for patient care through
is well positioned for accelerated growth, thanks new algorithms and technology intended to improve
to the introduction of our AVEIR DR — the world’s patient safety and therapy assurance. This portfolio
first dual-chamber, leadless pacemaker system. The includes the Ellipse ICD, which offers non-invasive
system consists of two pacers, each smaller than programming options and wireless remote monitoring
a AAA battery, that are implanted via a minimally with our Merlin@home transmitter; and Gallant ICD,
invasive procedure, using the devices’ unique mapping which combines built-in smartphone connectivity
capability to assess their correct positioning prior to with intuitive programming to help doctors meet
placement. The devices communicate with each other patients’ changing needs.
through our proprietary i2i system. AVEIR is also
designed to be easily retrievable, should the patient’s
therapy needs change.
Our implantable cardioverter defibrillators (ICD) SARA WYKURZ

are designed to continuously monitor patients’ heart LIBERTYVILLE, ILLINOIS, USA
rhythms and detect irregular heartbeats, delivering AVEIR DR
electrical signals and controlled shocks to restore a
normal heart rhythm when necessary. These devices Sara received her AVEIR DR leadless pacemaker
after learning she had neurocardiogenic
syncope, a type of fainting — or brief loss of
consciousness — due to a sudden drop of heart
rate and blood pressure.
FOR POSITION ONLY
25
From engagement
to empowerment
At Abbott, it’s always been ACCELERATING THE PERSONALIZATION
OF HEALTHCARE
about empowering people Abbott is revolutionizing health with the most
personal technologies and empowering people
to live their fullest lives. with the data and knowledge they need to help
them live longer and better.
Abbott’s portfolio is filled PUTTING CONSUMERS IN CONTROL

With continuous data, people can understand
with products and solutions how choices impact their health, helping them
take better control of their conditions.
that let people engage more
fully with their care, taking HELPING HEALTHY PEOPLE STAY THAT WAY
Our connected-care and digital-health tools,
an active role in maintaining along with our portfolio of targeted nutrition
products and medicines, are helping people
their health. make better, faster, and more complete decisions
about their health in ways that fit easily into
their lives.
26
Christos Gkipatas
Munich, Germany
JETi Thrombectomy
System
After his doctors

used Abbott’s JETi
thrombectomy system
to remove blood clots
in his legs, Chris was
able to walk without
pain for the first time
in months.
27
Medicines
A growing array of medicines and therapies
to transform the quality of healthcare
in emerging markets worldwide.
A representative sample of our broad portfolio

of leading medicines in emerging markets.
Every day, more than 62 million people around the world In 2023, we made great progress in broadening access
use Abbott medicines. Our targeted product portfolios to health in emerging markets by expanding our
span multiple therapeutic areas, with key offerings in collaboration with biotech leader mAbxience Holdings
gastroenterology, women’s health, cardiometabolic, pain to commercialize several biosimilar molecules, with the
management/central nervous system, and respiratory. goal of bringing these newer therapies — for oncology,
women’s health, and respiratory diseases — to more
By focusing our medicines business solely in people, in more places.
emerging markets, Abbott is able to develop a detailed
understanding of the unique health challenges and We also offer services that help people better manage
needs of local communities. We build on that knowledge, their health. For example, our a:care initiative offers
bringing our broad and deep scientific expertise to digital solutions, developed with behavioral science and
improve trusted medicines, differentiating ourselves AI at its core, to build healthy habits, giving patients and
from pure generic competitors through our exacting healthcare providers tools, tips, and resources. These
quality standards, reliable supply chain, broad product tools can help redefine how people manage their health,
range, deep understanding of our customers’ needs, and improving interactions between patients and healthcare
patient-centered innovation. professionals, and helping reduce healthcare costs.
28
WANNAPAPORN
APIVATMONGKOL
BANGKOK, THAILAND
DUPHASTON
Duphaston has helped more than

113 million women worldwide, with
an estimated 20 million pregnancies,
in the past 60 years. Wannapaporn,
shown here with her family, became
pregnant through in vitro fertilization
MABXIENCE with the help of Duphaston.
BIOSIMILARS
PARTNERSHIP
Expanded partnership
brings the benefits
of biologic medicines
to a wider pool
of patients.
29
Nutrition
Setting the standard for science-based
nutrition to support the growth, health, and
wellness of people at every stage of life.
ADULT AND PEDIATRIC NUTRITION

Broad-based offering for every age and stage of life.
For almost 100 years, Abbott has been a leader in Our specialty nutrition brands include Glucerna
complete and supplemental nutrition. products, made with Carbsteady, a unique blend of
slow-release carbohydrates, that helps minimize
Our adult nutritional products fill nutrition gaps — blood sugar spikes for people with diabetes; Nepro,
nourishing patients who are not able to eat adequately, formulated to help replace protein lost during dialysis
or supporting active adults in leading an overall treatments; and Juven, which is formulated to support
healthy lifestyle. We helped create this category in wound healing.
1973, with the launch of Ensure. Today, Ensure
is the No. 1 doctor-recommended brand of nutritional The foundation of our pediatric nutrition portfolio
shake, encompassing a full line that includes pre- is our market-leading Similac line of infant formulas.
and post-surgery shakes specifically formulated to Similac 360 Total Care contains an exclusive prebiotic
support recovery. We’re expanding our portfolio blend that makes these formulas closer than ever to
with PROTALITY, which is designed to support the breast milk. We’ve also developed a variety of amino-
growing number of adults interested in pursuing acid-based formulas for children who suffer from food
weight loss while maintaining muscle mass. allergies, gastrointestinal disorders, and inborn errors
of metabolism.
30
VICKY RAO
SEREMBAN, MALAYSIA
GLUCERNA
When Vicky was diagnosed with

type 2 diabetes, he knew he had
to make some changes in his
life. Today he stays healthy by
exercising regularly, eating right,
and supplementing his diet
with Glucerna.
PediaSure provides complete, balanced nutrition,

including all macro- and micronutrients
needed to help children achieve optimal rates
of growth and development.
Pedialyte, the No. 1 doctor-recommended

brand, helps people of all ages replace fluids
and electrolytes they’ve lost due to mild-to-
moderate dehydration.
GLUCERNA
Nutritional shake
designed to help
manage blood sugar.
31
Diabetes Care
Making diabetes management
easier and more accessible.
Our commitment to continuous innovation has We’re working to develop and launch the first
made Abbott the global leader in continuous glucose automated insulin delivery (AID) system powered by
monitoring.1 We designed our FreeStyle Libre portfolio the FreeStyle Libre 3 sensor.
with access and affordability in mind from Day One, and
today it’s the world’s most affordable and widely used We are integrating data from connected insulin pens
continuous glucose monitoring system,2 with more than with FreeStyle LibreLink6 and LibreView,7 letting
5 million regular users across more than 60 countries.3 patients, caregivers, and healthcare professionals view
glucose and insulin data together to help them make
Our flagship product, the FreeStyle Libre 3 system, better-informed treatment decisions.
features the world’s smallest, thinnest, and most
discreet sensor.4 Real-world and clinical data show that And in 2023, we acquired Bigfoot Biomedical, adding
this technology helps people with diabetes improve the Unity diabetes management system to our diabetes
their glucose control, lower their HbA1Cs (a measure care offering. Unity features smart caps for disposable
of glucose levels over time), decrease diabetes-related insulin-injector pens that integrate with our FreeStyle
hospital admissions, and improve their quality of life.5 technology to provide dose recommendations for people
with diabetes who use multiple daily injections of insulin.
32
DOUG MASIUK
BRECKENRIDGE, COLORADO, USA
FREESTYLE LIBRE 3
An outdoor sports enthusiast and

an avid runner, Doug was the
first person with type 1 diabetes
to run all the way across the
United States.
FREESTYLE
LIBRE 3
CONTINUOUS
GLUCOSE
MONITORING
SYSTEM
More than 5 million people
>5
million users
in 60 countries rely on
our FreeStyle Libre portfolio
to help them manage
their diabetes.
33
World-class marathoner
Eliud Kipchoge has relied
on Abbott’s glucose sport
biosensors to give him
continuous insights into his
body’s fuel levels as he trains.
34
The future
in fast forward
Emerging technologies promise rapid,
dramatic change across every aspect
of life, with transformative potential
for healthcare. At Abbott, our broad-based
model and focus on innovation put us
in a strong position to lead the way.
Abbott is leveraging
decades of leadership
in glucose monitoring,
moving beyond diabetes
to create the future of
biowearables with Lingo,
its new device that helps
users understand the
unique languages of
their bodies.
35
2023 FINANCIAL
REPORT
37 Consolidated Statement of Earnings 62 Report of Independent Registered

Public Accounting Firm
38 Consolidated Statement of
Comprehensive Income 64 Report of Independent Registered
Public Accounting Firm
39 Consolidated Statement of Cash Flows
65 Financial Instruments and
40 Consolidated Balance Sheet
Risk Management
42 Consolidated Statement of
66 Financial Review
Shareholders’ Investment
79 Performance Graph
43 Notes to Consolidated
Financial Statements 80 Summary of Selected Financial Data
62 Management Report on Internal 81 Directors and Corporate Officers

Control Over Financial Reporting
82 Shareholder and Corporate
Information
36
C O N S O L I D AT E D S TAT E M E N T O F E A R N I N G S
(in millions except per share data)
Year Ended December 31 2023 2022 2021

Net Sales $40,109 $43,653 $43,075
Cost of products sold, excluding amortization of intangible assets 17,975 19,142 18,537
Amortization of intangible assets 1,966 2,013 2,047
Research and development 2,741 2,888 2,742
Selling, general and administrative 10,949 11,248 11,324
Total Operating Cost and Expenses 33,631 35,291 34,650
Operating Earnings 6,478 8,362 8,425
Interest expense 637 558 533
Interest income (385) (183) (43)
Net foreign exchange (gain) loss 41 2 1
Other (income) expense, net (479) (321) (277)
Earnings before Taxes 6,664 8,306 8,211
Taxes on Earnings 941 1,373 1,140
Net Earnings $÷5,723 $÷6,933 $÷7,071
Basic Earnings Per Common Share $÷÷3.28 $÷÷3.94 $÷÷3.97
Diluted Earnings Per Common Share $÷÷3.26 $÷÷3.91 $÷÷3.94
Average Number of Common Shares Outstanding Used for

Basic Earnings Per Common Share 1,740 1,753 1,775
Dilutive Common Stock Options 9 11 14
Average Number of Common Shares Outstanding Plus
Dilutive Common Stock Options 1,749 1,764 1,789
Outstanding Common Stock Options Having No Dilutive Effect 5 3 —
The accompanying notes to consolidated financial statements are an integral part of this statement.
37
C O N S O L I D AT E D S TAT E M E N T O F C O M P R E H E N S I V E I N C O M E
(in millions)

Net Earnings $«5,723 $«6,933 $«7,071
Foreign currency translation gain (loss) adjustments 229 (894) (980)
Net actuarial gains (losses) and prior service cost and credits and amortization
of net actuarial losses and prior service cost and credits, net of taxes of $31 in
2023, $330 in 2022 and $340 in 2021 117 1,177 1,201
Net gains (losses) on derivative instruments designated
as cash flow hedges, net of taxes of $(66) in 2023, $11 in 2022 and $63 in 2021 (134) 40 351
Other Comprehensive Income (Loss) 212 323 572
Comprehensive Income $«5,935 $«7,256 $«7,643
Supplemental Accumulated Other Comprehensive Income (Loss) Information,

net of tax as of December 31:
Cumulative foreign currency translation (loss) adjustments $(6,504) $(6,733) $(5,839)
Net actuarial (losses) and prior service (cost) and credits (1,376) (1,493) (2,670)
Cumulative gains (losses) on derivative instruments designated
as cash flow hedges 41 175 135
Accumulated other comprehensive income (loss) $(7,839) $(8,051) $(8,374)
38
C O N S O L I D AT E D S TAT E M E N T O F C A S H F L O W S
(in millions)

Cash Flow From (Used in) Operating Activities:
Net earnings $«5,723 $«6,933 $÷7,071
Adjustments to reconcile earnings to net cash from operating activities —
Depreciation 1,277 1,254 1,491
Amortization of intangible assets 1,966 2,013 2,047
Share-based compensation 644 685 640
Investing and financing losses, net 126 215 55
Trade receivables (356) (68) (383)
Inventories (232) (1,413) (456)
Prepaid expenses and other assets (542) (75) (312)
Trade accounts payable and other liabilities (760) 420 1,288
Income taxes (585) (383) (908)
Net Cash From Operating Activities 7,261 9,581 10,533
Cash Flow From (Used in) Investing Activities:

Acquisitions of property and equipment (2,202) (1,777) (1,885)
Acquisitions of businesses and technologies, net of cash acquired (877) — (187)
Proceeds from business dispositions 40 48 134
Purchases of investment securities (159) (185) (173)
Proceeds from sales of investment securities 43 152 77
Other 22 22 26
Net Cash From (Used in) Investing Activities (3,133) (1,740) (2,008)
Cash Flow From (Used in) Financing Activities:

Proceeds from issuance of (repayments of ) short-term debt, net and other 21 47 (204)
Proceeds from issuance of long-term debt and debt with maturities over 3 months 2 7 4
Repayments of long-term debt and debt with maturities over 3 months (2,498) (753) (48)
Purchases of common shares (1,227) (3,795) (2,299)
Proceeds from stock options exercised 167 167 255
Dividends paid (3,556) (3,309) (3,202)
Net Cash From (Used in) Financing Activities (7,091) (7,636) (5,494)
Effect of exchange rate changes on cash and cash equivalents (23) (122) (70)
Net Increase (Decrease) in Cash and Cash Equivalents (2,986) 83 2,961
Cash and Cash Equivalents, Beginning of Year 9,882 9,799 6,838
Cash and Cash Equivalents, End of Year $«6,896 $«9,882 $÷9,799
Supplemental Cash Flow Information:

Income taxes paid $«1,475 $«1,864 $÷1,941
Interest paid 662 563 544
The accompanying notes to consolidated financial statements are an integral part of this statement
39
C O N S O L I D AT E D B A L A N C E S H E E T
(dollars in millions)
December 31 2023 2022

Assets
Current assets:
Cash and cash equivalents $÷6,896 $÷9,882
Investments, primarily bank time deposits and U.S. treasury bills 383 288
Trade receivables, less allowances of — 2023: $444; 2022: $500 6,565 6,218
Inventories:
Finished products 3,946 3,805
Work in process 807 680
Materials 1,817 1,688
Total inventories 6,570 6,173
Other prepaid expenses and receivables 2,256 2,663
Total current assets 22,670 25,224
Investments 799 766
Property and equipment, at cost:

Land 529 511
Buildings 4,161 4,053
Equipment 15,179 14,164
Construction in progress 2,064 1,484
21,933 20,212
Less: accumulated depreciation and amortization 11,779 11,050
Net property and equipment 10,154 9,162
Intangible assets, net of amortization 8,815 10,454

Goodwill 23,679 22,799
Deferred income taxes and other assets 7,097 6,033
$73,214 $74,438
40
C O N S O L I D AT E D B A L A N C E S H E E T
(dollars in millions)
December 31 2023 2022

Liabilities and Shareholders’ Investment
Current liabilities:
Trade accounts payable $÷«4,295 $÷«4,607
Salaries, wages and commissions 1,597 1,556
Other accrued liabilities 5,422 5,845
Dividends payable 955 887
Income taxes payable 492 343
Current portion of long-term debt 1,080 2,251
Total current liabilities 13,841 15,489
Long-term debt 13,599 14,522

Post-employment obligations and other long-term liabilities 6,947 7,522
Commitments and contingencies
Shareholders’ investment:
Preferred shares, one dollar par value Authorized — 1,000,000 shares, none issued — —
Common shares, without par value Authorized — 2,400,000,000 shares
Issued at stated capital amount — Shares: 2023: 1,987,883,852; 2022: 1,986,519,278 24,869 24,709
Common shares held in treasury, at cost — Shares: 2023: 253,807,494; 2022: 248,724,257 (15,981) (15,229)
Earnings employed in the business 37,554 35,257
Accumulated other comprehensive income (loss) (7,839) (8,051)
Total Abbott Shareholders’ Investment 38,603 36,686
Noncontrolling interests in subsidiaries 224 219
Total Shareholders’ Investment 38,827 36,905
$«73,214 $«74,438
41
C O N S O L I D AT E D S TAT E M E N T O F S H A R E H O L D E R S ’ I N V E S T M E N T
(in millions except shares and per share data)

Common Shares:
Beginning of Year
Shares: 2023: 1,986,519,278; 2022: 1,985,273,421; 2021: 1,981,156,896 $«24,709 $«24,470 $«24,145
Issued under incentive stock programs
Shares: 2023: 1,364,574; 2022: 1,245,857; 2021: 4,116,525 66 72 173
Share-based compensation 646 687 642
Issuance of restricted stock awards (552) (520) (490)
End of Year
Shares: 2023: 1,987,883,852; 2022: 1,986,519,278; 2021: 1,985,273,421 $«24,869 $«24,709 $«24,470
Common Shares Held in Treasury:

Beginning of Year
Shares: 2023: 248,724,257; 2022: 221,191,228; 2021: 209,926,622 $(15,229) $(11,822) $(10,042)
Issued under incentive stock programs
Shares: 2023: 4,881,031; 2022: 4,980,202; 2021: 5,650,168 297 269 271
Purchased
Shares: 2023: 9,964,268; 2022: 32,513,231; 2021: 16,914,774 (1,049) (3,676) (2,051)
End of Year
Shares: 2023: 253,807,494; 2022: 248,724,257; 2021: 221,191,228 $(15,981) $(15,229) $(11,822)
Earnings Employed in the Business:

Beginning of Year $«35,257 $«31,528 $«27,627
Net earnings 5,723 6,933 7,071
Cash dividends declared on common shares
(per share — 2023: $2.08; 2022: $1.92; 2021: $1.82) (3,625) (3,365) (3,235)
Effect of common and treasury share transactions 199 161 65
End of Year $«37,554 $«35,257 $«31,528
Accumulated Other Comprehensive Income (Loss):

Beginning of Year $÷(8,051) $÷(8,374) $÷(8,946)
Other comprehensive income (loss) 212 323 572
End of Year $÷(7,839) $÷(8,051) $÷(8,374)
Noncontrolling Interests in Subsidiaries:

Beginning of Year $÷÷÷219 $÷÷÷222 $÷÷÷219
Noncontrolling Interests’ share of income, net of distributions and
share repurchases 5 (3) 3
End of Year $÷÷÷224 $÷÷÷219 $÷÷÷222
42
N O T E S T O C O N S O L I D AT E D F I N A N C I A L S TAT E M E N T S
NOTE 1 — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES GILTI tax as a period expense and provides for the tax in the year
Nature of Business — Abbott’s principal business is the discovery, that the tax is incurred. Interest and penalties on income tax
development, manufacture and sale of a broad line of health care obligations are included in taxes on earnings.
products. Earnings Per Share — Unvested restricted stock units and awards
Basis of Consolidation — The consolidated financial statements that contain non-forfeitable rights to dividends are treated as
include the accounts of the parent company and subsidiaries, after participating securities and are included in the computation of
elimination of intercompany transactions. earnings per share under the two-class method. Under the two-
class method, net earnings are allocated between common shares
Use of Estimates — The consolidated financial statements have and participating securities. Net earnings allocated to common
been prepared in accordance with generally accepted accounting shares in 2023, 2022 and 2021 were $5.701 billion, $6.905 billion
principles in the United States and necessarily include amounts and $7.042 billion, respectively.
based on estimates and assumptions by management. Actual
results could differ from those amounts. Significant estimates Pension and Post-Employment Benefits — Abbott accrues for the
include amounts for sales rebates, income taxes, pension and other actuarially determined cost of pension and post-employment
post-employment benefits, valuation of intangible assets, litiga- benefits over the service attribution periods of the employees.
tion, derivative financial instruments, and inventory and accounts Abbott must develop long-term assumptions, the most significant
receivable exposures. of which are the health care cost trend rates, discount rates and
the expected return on plan assets. Differences between the
Foreign Currency Translation — The statements of earnings of foreign expected long-term return on plan assets and the actual return are
subsidiaries whose functional currencies are other than the U.S. amortized over a five-year period. Actuarial losses and gains are
dollar are translated into U.S. dollars using average exchange rates amortized over the remaining service attribution periods of the
for the period. The net assets of foreign subsidiaries whose functional employees under the corridor method.
currencies are other than the U.S. dollar are translated into U.S.
dollars using exchange rates as of the balance sheet date. The U.S. Fair Value Measurements — For assets and liabilities that are
dollar effects that arise from translating the net assets of these measured using quoted prices in active markets, total fair value
subsidiaries at changing rates are recorded in the foreign currency is the published market price per unit multiplied by the number
translation adjustment account, which is included in equity as a of units held without consideration of transaction costs. Assets
component of Accumulated other comprehensive income (loss). and liabilities that are measured using significant other observable
Transaction gains and losses are recorded on the Net foreign inputs are valued by reference to similar assets or liabilities,
exchange (gain) loss line of the Consolidated Statement of Earnings. adjusted for contract restrictions and other terms specific to that
asset or liability. For these items, a significant portion of fair value
Revenue Recognition — Revenue from product sales is recognized is derived by reference to quoted prices of similar assets or liabili-
upon the transfer of control, which is generally upon shipment or ties in active markets. For all remaining assets and liabilities, fair
delivery, depending on the delivery terms set forth in the customer value is derived using a fair value model, such as a discounted cash
contract. Provisions for discounts, rebates and sales incentives to flow model or Black-Scholes model. Purchased intangible assets
customers, and returns and other adjustments are provided for in are recorded at fair value. The fair value of significant purchased
the period the related sales are recorded. Sales incentives to cus- intangible assets is based on independent appraisals. Abbott uses
tomers are not material. Historical data is readily available and a discounted cash flow model to value intangible assets. The dis-
reliable, and is used for estimating the amount of the reduction in counted cash flow model requires assumptions about the timing and
gross sales. Revenue from the launch of a new product, from an amount of future net cash flows, risk, the cost of capital, terminal
improved version of an existing product, or for shipments in values and market participants. Intangible assets are reviewed for
excess of a customer’s normal requirements are recorded when impairment on a quarterly basis. Goodwill and indefinite-lived
the conditions noted above are met. In those situations, manage- intangible assets are tested for impairment at least annually.
ment records a returns reserve for such revenue, if necessary. In
certain Abbott businesses, primarily within diagnostics, Abbott Share-Based Compensation — The fair value of stock options
participates in selling arrangements that include multiple perfor- and restricted stock awards and units are amortized over their
mance obligations (e.g., instruments, reagents, procedures, and requisite service period, which could be shorter than the vesting
service agreements). The total transaction price of the contract is period if an employee is retirement eligible, with a charge to
allocated to each performance obligation in an amount based on compensation expense.
the estimated relative standalone selling prices of the promised Litigation — Abbott accounts for litigation losses in accordance
goods or services underlying each performance obligation. with Financial Accounting Standards Board (FASB) Accounting
Income Taxes — Deferred income taxes are provided for the tax Standards Codification (ASC) No. 450, “Contingencies.” Under
effect of differences between the tax bases of assets and liabilities ASC No. 450, loss contingency provisions are recorded for proba-
and their reported amounts in the financial statements at the ble losses at management’s best estimate of a loss, or when a best
enacted statutory rate to be in effect when the taxes are paid. No estimate cannot be made, a minimum loss contingency amount is
additional income taxes have been provided for any remaining recorded. Legal fees are recorded as incurred.
undistributed foreign earnings not subject to the transition tax Cash, Cash Equivalents and Investments — Cash equivalents
related to the U.S. Tax Cuts and Jobs Act (TCJA), or any additional consist of bank time deposits, U.S. government securities, money
outside basis differences that exist, as these amounts continue to market funds and U.S. treasury bills with original maturities of
be indefinitely reinvested in foreign operations. The TCJA sub- three months or less. Abbott holds certain investments with a
jects taxpayers to tax on global intangible low-taxed income carrying value of $141 million that are accounted for under the
(GILTI) earned by certain foreign subsidiaries. Abbott treats the equity method of accounting. Investments held in a rabbi trust
43
and investments in publicly traded equity securities are recorded Abbott has no material exposures to off-balance sheet arrange-
at fair value and changes in fair value are recorded in earnings. ments; no special purpose entities; nor activities that include
Investments in equity securities that are not traded on public stock non-exchange-traded contracts accounted for at fair value. Abbott
exchanges are recorded at cost minus impairment, if any, plus or periodically acquires a business or product rights in which Abbott
minus changes resulting from observable price changes in orderly agrees to pay contingent consideration based on attaining certain
transactions for identical or similar investments of the same issuer. thresholds or based on the occurrence of certain events.
Trade Receivable Valuations — Accounts receivable are stated at NOTE 2 — NEW ACCOUNTING STANDARDS
the net amount expected to be collected. The allowance for doubt-
ful accounts reflects the current estimate of credit losses expected RECENTLY ADOPTED ACCOUNTING STANDARDS
to be incurred over the life of the accounts receivable. Abbott In September 2022, the FASB issued Accounting Standards
considers various factors in establishing, monitoring, and adjust- Update (ASU) 2022-04, Disclosure of Supplier Finance Program
ing its allowance for doubtful accounts, including the aging of the Obligations, which requires an entity to report information about
accounts and aging trends, the historical level of charge-offs, and its supplier finance program. Abbott adopted the standard on
specific exposures related to particular customers. Abbott also January 1, 2023. The new standard did not have an impact on
monitors other risk factors and forward-looking information, such Abbott’s consolidated financial statements.
as country risk, when determining credit limits for customers and
establishing adequate allowances. Accounts receivable are charged In December 2019, the FASB issued ASU 2019-12, Income Taxes
off after all reasonable means to collect the full amount (including (Topic 740): Simplifying the Accounting for Income Taxes, which
litigation, where appropriate) have been exhausted. among other things, eliminates certain exceptions in the current
rules regarding the approach for intraperiod tax allocations and
Inventories — Inventories are stated at the lower of cost (first-in, the methodology for calculating income taxes in an interim period,
first-out basis) or net realizable value. Cost includes material and and clarifies the accounting for transactions that result in a
conversion costs. step-up in the tax basis of goodwill. Abbott adopted the standard
Property and Equipment — Depreciation and amortization are on January 1, 2021. The new standard did not have an impact on
provided on a straight-line basis over the estimated useful lives of its consolidated financial statements.
the assets. The following table shows estimated useful lives of
RECENT ACCOUNTING STANDARDS NOT YET ADOPTED
property and equipment:
In November 2023, the FASB issued ASU 2023-07, Segment
Classification Estimated Useful Lives Reporting (Topic 280): Improvements to Reportable Segment
Buildings 10 to 50 years Disclosures, which expands the breadth and frequency of
Equipment 2 to 20 years required segment disclosures. The guidance is required to be
applied retrospectively to all periods presented in the financial
Product Liability — Abbott accrues for product liability claims statements. The standard becomes effective for Abbott for full year
when it is probable that a liability has been incurred and the 2024 reporting and for interim periods beginning in the first
amount of the liability can be reasonably estimated based on quarter of 2025. Abbott is currently evaluating the impact of this
existing information. The liabilities are adjusted quarterly as new standard on its consolidated financial statements.
additional information becomes available. Product liability In December 2023, the FASB issued ASU 2023-09, Income Taxes
losses are self-insured. (Topic 740): Improvements to Income Tax Disclosures, which
Research and Development Costs — Internal research and develop- requires an entity to disclose annually additional information
ment costs are expensed as incurred. Clinical trial costs incurred related to the company’s income tax rate reconciliation and
by third parties are expensed as the contracted work is performed. income taxes paid during the period. The guidance should be
Where contingent milestone payments are due to third parties applied prospectively with the option to apply the standard retro-
under research and development arrangements, the milestone spectively. The standard becomes effective for Abbott for full year
payment obligations are expensed when the milestone results 2025 reporting. Abbott is currently evaluating the impact of this
are achieved. new standard on its consolidated financial statements.
Acquired In-Process and Collaborations Research and Development NOTE 3 — REVENUE
(IPR&D) — The initial costs of rights to IPR&D projects obtained in
an asset acquisition are expensed as IPR&D unless the project has an Abbott’s revenues are derived primarily from the sale of a
alternative future use. These costs include initial payments incurred broad line of health care products under short-term receivable
prior to regulatory approval in connection with research and devel- arrangements. Patent protection and licenses, technological and
opment collaboration agreements that provide rights to develop, performance features, and inclusion of Abbott’s products under
manufacture, market and/or sell pharmaceutical or medical device a contract most impact which products are sold; price controls,
products. The fair value of IPR&D projects acquired in a business competition and rebates most impact the net selling prices of
combination are capitalized and accounted for as indefinite-lived products; and foreign currency translation impacts the measure-
intangible assets until completed and are then amortized over the ment of net sales and costs. Abbott’s products are generally sold
remaining useful life. Collaborations are not significant. directly to retailers, wholesalers, distributors, hospitals, health
care facilities, laboratories, physicians’ offices and government
Concentration of Risk and Guarantees — Due to the nature of its agencies throughout the world. Abbott has four reportable seg-
operations, Abbott is not subject to significant concentration risks ments: Established Pharmaceutical Products, Diagnostic Products,
relating to customers, products or geographic locations. Product Nutritional Products, and Medical Devices.
warranties are not significant.
44
The following tables provide detail by sales category:
2023 2022 2021

(in millions) U.S. Int’l Total U.S. Int’l Total U.S. Int’l Total
Established Pharmaceutical Products —
Key Emerging Markets $÷÷÷÷— $÷3,807 $÷3,807 $÷÷÷÷— $÷3,766 $÷3,766 $÷÷÷÷— $÷3,565 $÷3,565
Other — 1,259 1,259 — 1,146 1,146 — 1,153 1,153
Total — 5,066 5,066 — 4,912 4,912 — 4,718 4,718
Nutritionals —
Pediatric Nutritionals 1,977 1,957 3,934 1,562 1,919 3,481 2,192 2,106 4,298
Adult Nutritionals 1,436 2,784 4,220 1,357 2,621 3,978 1,364 2,632 3,996
Total 3,413 4,741 8,154 2,919 4,540 7,459 3,556 4,738 8,294
Diagnostics —
Core Laboratory 1,243 3,916 5,159 1,137 3,751 4,888 1,145 3,983 5,128
Molecular 172 402 574 370 625 995 566 861 1,427
Point of Care 396 169 565 372 153 525 384 152 536
Rapid Diagnostics 2,518 1,172 3,690 6,652 3,409 10,061 4,916 3,519 8,435
Total 4,329 5,659 9,988 8,531 7,938 16,469 7,011 8,515 15,526
Medical Devices —
Rhythm Management 1,085 1,170 2,255 1,029 1,090 2,119 1,018 1,180 2,198
Electrophysiology 1,008 1,187 2,195 909 1,018 1,927 778 1,129 1,907
Heart Failure 888 273 1,161 809 226 1,035 772 235 1,007
Vascular 978 1,703 2,681 864 1,619 2,483 915 1,739 2,654
Structural Heart 883 1,061 1,944 818 894 1,712 730 880 1,610
Neuromodulation 725 165 890 619 151 770 616 165 781
Diabetes Care 2,129 3,632 5,761 1,633 3,123 4,756 1,212 3,116 4,328
Total 7,696 9,191 16,887 6,681 8,121 14,802 6,041 8,444 14,485
Other 14 — 14 11 — 11 34 18 52
Total $15,452 $24,657 $40,109 $18,142 $25,511 $43,653 $16,642 $26,433 $43,075
Note: The Acelis Connected Health business was internally transferred from Rapid Diagnostics to Heart Failure on January 1, 2023. As a result, $115 million of sales in 2022 and $118 million of sales
in 2021 were moved from Rapid Diagnostics to Heart Failure.
Products sold by the Diagnostics segment include various types Rebate amounts are usually based upon the volume of purchases
of diagnostic tests to detect the COVID-19 coronavirus. Abbott’s using contractual or statutory prices for a product. Factors used
COVID-19 testing-related sales totaled approximately $1.6 billion in the rebate calculations include the identification of which
in 2023, $8.4 billion in 2022 and $7.7 billion in 2021. products have been sold subject to a rebate, which customer or
Abbott recognizes revenue from product sales upon the transfer government agency price terms apply, and the estimated lag time
of control, which is generally upon shipment or delivery, depend- between sale and payment of a rebate. Using historical trends,
ing on the delivery terms set forth in the customer contract. For adjusted for current changes, Abbott estimates the amount of the
maintenance agreements that provide service beyond Abbott’s rebate that will be paid, and records the liability as a reduction of
standard warranty and other service agreements, revenue is gross sales when Abbott records its sale of the product. Settlement
recognized ratably over the contract term. A time-based measure of the rebate generally occurs from one to six months after sale.
of progress appropriately reflects the transfer of services to the Abbott regularly analyzes the historical rebate trends and makes
customer. Payment terms between Abbott and its customers vary adjustments to reserves for changes in trends and terms of rebate
by the type of customer, country of sale, and the products or programs. Historically, adjustments to prior years’ rebate accruals
services offered. The term between invoicing and the payment have not been material to net income.
due date is not significant. Other allowances charged against gross sales include cash dis-
Management exercises judgment in estimating variable consider- counts and returns, which are not significant. Cash discounts are
ation. Provisions for discounts, rebates and sales incentives to known within 15 to 30 days of sale, and therefore can be reliably
customers, and returns and other adjustments are provided for in estimated. Returns can be reliably estimated because Abbott’s
the period the related sales are recorded. Sales incentives to cus- historical returns are low, and because sales return terms and
tomers are not material. Historical data is readily available and other sales terms have remained relatively unchanged for several
reliable, and is used for estimating the amount of the reduction in periods. Product warranties are also not significant.
gross sales. Abbott provides rebates to government agencies, whole-
salers, group purchasing organizations and other private entities.
45
Abbott also applies judgment in determining the timing of OTHER CONTRACT ASSETS AND LIABILITIES
revenue recognition related to contracts that include multiple Abbott discloses Trade receivables separately in the Consolidated
performance obligations. The total transaction price of the con- Balance Sheet at the net amount expected to be collected. Contract
tract is allocated to each performance obligation in an amount assets primarily relate to Abbott’s conditional right to consider-
based on the estimated relative standalone selling prices of the ation for work completed but not billed at the reporting date.
promised goods or services underlying each performance Contract assets at the beginning and end of the period, as well as
obligation. For goods or services for which observable standalone the changes in the balance, were not significant.
selling prices are not available, Abbott uses an expected cost plus
a margin approach to estimate the standalone selling price of Contract liabilities primarily relate to payments received from
each performance obligation. customers in advance of performance under the contract. Abbott’s
contract liabilities arise primarily in the Medical Devices reportable
REMAINING PERFORMANCE OBLIGATIONS segment when payment is received upfront for various multi-
As of December 31, 2023, the estimated revenue expected to be period extended service arrangements. Changes in the contract
recognized in the future related to performance obligations that are liabilities during the period are as follows:
unsatisfied (or partially unsatisfied) was approximately $4.4 billion
(in millions)
in the Diagnostic Products segment and approximately $478 million
in the Medical Devices segment. Abbott expects to recognize reve- Contract Liabilities:
nue on approximately 58 percent of these remaining performance Balance at December 31, 2021 $«520
obligations over the next 24 months, approximately 17 percent over Unearned revenue from cash received during the period 578
the subsequent 12 months and the remainder thereafter. Revenue recognized related to contract liability balance (598)
These performance obligations primarily reflect the future sale Balance at December 31, 2022 500
of reagents/consumables in contracts with minimum purchase Unearned revenue from cash received during the period 469
obligations, extended warranty or service obligations related Revenue recognized related to contract liability balance (424)
to previously sold equipment, and remote monitoring services Balance at December 31, 2023 $«545
related to previously implanted devices. Abbott has applied the
practical expedient described in ASC 606-10-50-14 and has not NOTE 4 — SUPPLEMENTAL FINANCIAL INFORMATION
included remaining performance obligations related to contracts
with original expected durations of one year or less in the Other (income) expense, net, for 2023, 2022 and 2021 includes
amounts above. approximately $498 million, $406 million and $270 million of
income, respectively, related to the non-service cost components
ASSETS RECOGNIZED FOR COSTS TO OBTAIN A of the net periodic benefit costs associated with the pension and
CONTRACT WITH A CUSTOMER post-retirement medical plans.
Abbott has applied the practical expedient in ASC 340-40-25-4 The following summarizes the activity related to the allowance
and records as an expense the incremental costs of obtaining for doubtful accounts:
contracts with customers in the period of occurrence when the
amortization period of the asset that Abbott otherwise would have (in millions)
recognized is one year or less. Upfront commission fees paid to Allowance for Doubtful Accounts:
sales personnel as a result of obtaining or renewing contracts with Balance at December 31, 2021 $313
customers are incremental to obtaining the contract. Abbott capi- Provisions/charges to income 6
talizes these amounts as contract costs. Capitalized commission Amounts charged off and other deductions (57)
fees are amortized based on the contract duration to which the
Balance at December 31, 2022 262
assets relate which ranges from two to ten years. The amounts as
of December 31, 2023 and 2022 were not significant. Provisions/charges to income 26
Amounts charged off and other deductions (47)
Additionally, the cost of transmitters provided to customers that
Balance at December 31, 2023 $241
use Abbott’s remote monitoring service with respect to certain
medical devices are capitalized as contract costs. Capitalized
The allowance for doubtful accounts reflects the current estimate
transmitter costs are amortized based on the timing of the transfer
of credit losses expected to be incurred over the life of the accounts
of services to which the assets relate, which typically ranges from
receivable. Abbott considers various factors in establishing,
eight to ten years. The amounts as of December 31, 2023 and 2022
monitoring, and adjusting its allowance for doubtful accounts,
were not significant.
including the aging of the accounts and aging trends, the historical
level of charge-offs, and specific exposures related to particular
customers. Abbott also monitors other risk factors and forward-
looking information, such as country risk, when determining
credit limits for customers and establishing adequate allowances.
46
The detail of various balance sheet components is as follows: with a carrying value of $88 million that do not have a readily
determinable fair value.
(in millions)
December 31 2023 2022 (in millions)
Long-term Investments: December 31 2023 2022
Equity securities $555 $558 Other Accrued Liabilities:
Other 244 208 Accrued rebates payable to government agencies $÷«650 $÷«638
Total $799 $766 Accrued other rebates (a) 1,091 1,087
All other 3,681 4,120
The increase in Abbott’s long-term investments as of December 31, Total $5,422 $5,845
2023 versus the balance as of December 31, 2022 is primarily due
(a) Accrued wholesaler chargeback rebates of $232 million and $234 million at December 31, 2023
to investments acquired as part of a business acquisition and other and 2022, respectively, are netted in trade receivables because Abbott’s customers are invoiced
additional investments, partially offset by the impact of equity at a higher catalog price but only remit to Abbott their contract price for the products..
method investment losses.
(in millions)
Abbott’s equity securities as of December 31, 2023 and December 31, December 31 2023 2022
2022, include $314 million and $298 million, respectively, of
Post-employment Obligations and
investments in mutual funds that are held in a rabbi trust acquired
Other Long-term Liabilities:
as part of the St. Jude Medical, Inc. (St. Jude Medical) business
Defined benefit pension plans and post-employment
acquisition. These investments, which are specifically designated
medical and dental plans for significant plans $1,964 $1,784
as available for the purpose of paying benefits under a deferred
Deferred income taxes 568 991
compensation plan, are not available for general corporate pur-
poses and are subject to creditor claims in the event of insolvency. Operating lease liabilities 949 943
All other (b) 3,466 3,804
Abbott also holds certain investments as of December 31, 2023
Total $6,947 $7,522
with a carrying value of $141 million that are accounted for under
the equity method of accounting and other equity investments (b) Includes approximately $650 million and $850 million of net unrecognized tax benefits
and $430 million and $740 million of transition tax obligation related to the TCJA in
2023 and 2022, respectively.
NOTE 5 — ACCUMUL ATED OTHER COMPREHENSIVE INCOME (LOSS)

The components of the changes in accumulated other comprehensive income (loss), net of income taxes, are as follows:
Net Actuarial Gains Cumulative Gains
Cumulative Foreign (Losses) and Prior (Losses) on Derivative
Currency Translation Service (Costs) Instruments Designated
(in millions) Adjustments and Credits as Cash Flow Hedges Total
Balance at December 31, 2021 $(5,839) $(2,670) $«135 $(8,374)
Other comprehensive income (loss) before reclassifications (894) 1,007 199 312
(Income) loss amounts reclassified from accumulated other
comprehensive income (a) — 170 (159) 11
Net current period other comprehensive income (loss) (894) 1,177 40 323
Balance at December 31, 2022 (6,733) (1,493) 175 (8,051)
Other comprehensive income (loss) before reclassifications 212 127 5 344
(Income) loss amounts reclassified from accumulated other
comprehensive income (a) 17 (10) (139) (132)
Net current period other comprehensive income (loss) 229 117 (134) 212
Balance at December 31, 2023 $(6,504) $(1,376) $÷«41 $(7,839)
(a) (Income) loss amounts reclassified from accumulated other comprehensive income related to cash flow hedges are recorded as Cost of products sold. Net actuarial losses and prior service cost
is included as a component of net periodic benefit cost – see Note 14 for additional information.
47
NOTE 6 — BUSINESS ACQUISITIONS The gross amount of amortizable intangible assets, primarily
On September 22, 2023, Abbott completed the acquisition of Bigfoot product rights and technology, was $27.7 billion and $27.2 billion
Biomedical, Inc. (Bigfoot), which will further Abbott’s efforts to as of December 31, 2023 and 2022, respectively. The gross amount
develop connected solutions for making diabetes management more of amortizable intangible assets increased by $305 million due
personal and precise. The purchase price, the preliminary allocation to a recent business acquisition. Accumulated amortization was
of acquired assets and liabilities, and the revenue and net income $19.7 billion and $17.6 billion as of December 31, 2023 and
contributed by Bigfoot since the date of acquisition are not material December 31, 2022, respectively. Foreign currency translation
to Abbott’s consolidated financial statements. adjustments increased intangible assets by $44 million in 2023
and decreased intangible assets by $150 million in 2022. The
On April 27, 2023, Abbott completed the acquisition of estimated annual amortization expense for intangible assets
Cardiovascular Systems, Inc. (CSI) for $20 per common share, recorded at December 31, 2023 is approximately $1.9 billion in
which equated to a purchase price of $851 million. The transaction 2024, $1.7 billion in 2025, $1.6 billion in 2026, $1.3 billion in 2027
was funded with cash on hand and accounted for as a business and $0.7 billion in 2028. Amortizable intangible assets are amor-
combination. CSI’s atherectomy system, which is used in treating tized over 2 to 20 years.
peripheral and coronary artery disease, adds complementary
technologies to Abbott’s portfolio of vascular device offerings. Indefinite-lived intangible assets, which relate to IPR&D acquired
in a business combination, were approximately $787 million and
The preliminary allocation of the purchase price of the CSI acqui- $807 million at December 31, 2023 and 2022, respectively. In 2023,
sition resulted in the recording of two non-deductible developed $100 million of impairment charges related to certain indefinite-
technology intangible assets of $305 million; non-deductible lived intangible assets in the Medical Devices reportable segment
in-process research and development of $15 million, which will be were recorded on the Research and development line of the
accounted for as an indefinite-lived intangible asset until regula- Consolidated Statement of Earnings. Recent business acquisitions
tory approval or discontinuation; non-deductible goodwill of increased IPR&D assets by $80 million. In 2022, $111 million of
$371 million; net deferred tax assets of approximately $46 million impairment charges were recorded on the Research and develop-
and other net assets of approximately $114 million. The goodwill ment line of the Consolidated Statement of Earnings related to
is identifiable to the Medical Devices reportable segment and is certain IPR&D intangible assets associated with the Medical
attributable to expected synergies from combining operations, as Devices business segment.
well as intangible assets that do not qualify for separate recogni-
tion. Allocation of the purchase price of the acquisition will be NOTE 8 — RESTRUCTURING PL ANS
finalized when the valuation of assets and liabilities is completed. In 2023, Abbott management approved plans to restructure
Revenues and earnings of CSI included in Abbott’s consolidated various operations in order to reduce costs in its medical devices,
financial statements since the acquisition date are not material to diagnostic, and established pharmaceutical businesses. Abbott
Abbott’s consolidated revenue and earnings. If the acquisition of recorded employee related severance and other charges of approx-
CSI had taken place as of the beginning of 2022, consolidated net imately $144 million of which approximately $56 million was
sales and earnings would not have been significantly different recorded in Cost of products sold, approximately $22 million
from reported amounts. was recorded in Research and development and approximately
In September 2021, Abbott acquired Walk Vascular, LLC (Walk $66 million was recorded in Selling, general and administrative
Vascular), a commercial-stage medical device company with a expenses. Payments related to these actions totaled $65 million
minimally invasive thrombectomy system designed to remove in 2023 and the remaining liability totaled $79 million at
peripheral blood clots. Walk Vascular’s peripheral thrombectomy December 31, 2023. In addition, Abbott recognized fixed asset
system has been incorporated into Abbott’s existing endovascular impairment and inventory related charges of approximately
portfolio. The purchase price, the allocation of acquired assets and $31 million related to these restructuring plans.
liabilities, and the revenue and net income contributed by Walk In 2022, Abbott management approved plans to streamline
Vascular since the date of acquisition are not material to Abbott’s operations in order to reduce costs and improve efficiencies in
consolidated financial statements. its medical devices, nutritional, diagnostic, and established
NOTE 7 — GOODWILL AND INTANGIBLE ASSETS pharmaceutical businesses. Abbott recorded employee related
severance and other charges of approximately $234 million of
The total amount of goodwill reported was $23.7 billion at which approximately $59 million was recorded in Cost of products
December 31, 2023 and $22.8 billion at December 31, 2022. sold, approximately $36 million was recorded in Research and
In 2023, recent business acquisitions increased goodwill by development and approximately $139 million was recorded in
approximately $576 million. Foreign currency translation adjust- Selling, general and administrative expenses. In addition, Abbott
ments increased goodwill by $304 million in 2023 and decreased recognized inventory related charges of approximately $23 million
goodwill by $431 million in 2022. The amount of goodwill related and fixed assets impairment charges of approximately $4 million
to reportable segments at December 31, 2023 was $2.7 billion for related to these restructuring plans.
the Established Pharmaceutical Products segment, $285 million
for the Nutritional Products segment, $3.6 billion for the
Diagnostic Products segment, and $17.1 billion for the Medical
Devices segment. There were no reductions of goodwill relating
to impairments in 2023 and 2022.
48
The following summarizes the activity related to the 2022 In 2021, Abbott management approved plans to streamline
restructuring actions and the status of the related accruals as operations in order to reduce costs and improve efficiencies
of December 31, 2023: in its diagnostic, established pharmaceutical, nutritional, and
medical device businesses. Abbott recorded employee related
(in millions) severance and other charges of approximately $68 million of
Restructuring charges in 2022 $«234 which approximately $16 million was recorded in Cost of products
Payments and other adjustments (6) sold, approximately $4 million was recorded in Research and
Accrued balance at December 31, 2022 228 development and approximately $48 million was recorded in
Payments and other adjustments (170) Selling, general and administrative expenses. Restructuring activi-
Accrued balance at December 31, 2023 $÷«58 ties under the 2021 plans have been completed and there are no
remaining liabilities under these plans as of December 31, 2023.
In 2021, Abbott management approved a restructuring plan related NOTE 9 — INCENTIVE STOCK PROGRAM
to its Diagnostic Products segment to align its manufacturing
network for COVID-19 diagnostic tests with changes in the second The 2017 Incentive Stock Program authorizes the granting of
quarter of 2021 in projected testing demand driven by several nonqualified stock options, restricted stock awards, restricted
factors, including significant reductions in cases in the U.S. and stock units, performance awards, foreign benefits and other share-
other major developed countries, the accelerated rollout of based awards. Stock options and restricted stock awards and units
COVID-19 vaccines globally and the U.S. health authority’s updated comprise the majority of benefits that have been granted and are
guidance on testing for fully vaccinated individuals. Charges under currently outstanding under this program and a prior program.
this plan were recorded in Cost of products sold and totaled In 2023, Abbott granted 2,027,255 stock options, 474,369 restricted
$441 million in 2021. stock awards and 4,981,231 restricted stock units under this program.
The following summarizes the activity related to this restructuring Under Abbott’s stock incentive programs, the purchase price of
action and the status of the related accruals as of December 31, 2023: shares under option must be at least equal to the fair market value
of the common stock on the date of grant, and the maximum term
Fixed of an option is 10 years. Options generally vest equally over three
Inventory- Asset Other years. Restricted stock awards generally vest over three years, with
Related Write- Exit no more than one-third of the award vesting in any one year upon
(in millions) Charges Downs Costs Total
Abbott reaching a minimum return on equity target. Restricted
Restructuring charges
stock units vest over three years and upon vesting, the recipient
recorded in 2021 $«248 $«80 $113 $«441
receives one share of Abbott stock for each vested restricted stock
Payments — — (90) (90)
unit. The aggregate fair market value of options and restricted stock
Other non-cash (248) (80) — (328)
awards and units is recognized as expense over the requisite service
Accrued balance at
period, which may be shorter than the vesting period if an employee
December 31, 2021 — — 23 23
is retirement eligible. Forfeitures are estimated at the time of grant.
Payments and other
Restricted stock awards and settlement of vested restricted stock
adjustments — — (10) (10)
units are issued out of treasury shares. Abbott generally issues new
Accrued balance at
December 31, 2022 — — 13 13 shares for exercises of stock options. As a policy, Abbott does not
Payments and other
purchase its shares relating to its share-based programs.
adjustments — — (13) (13) In April 2017, Abbott’s shareholders authorized the 2017 Incentive
Accrued balance at Stock Program under which a maximum of 170 million shares
December 31, 2023 $÷÷— $÷— $÷÷— $÷÷— were available for issuance. At December 31, 2023, approximately
74 million shares remained available for future issuance.
The following table summarizes stock option activity for the year ended December 31, 2023 and the outstanding stock options as of
December 31, 2023.
Weighted
Weighted Average
Average Remaining Aggregate
(intrinsic values in millions) Options Exercise Price Life (Years) Intrinsic Value
Outstanding at December 31, 2022 28,288,046 $÷70.64 5.3 $1,167
Granted 2,027,255 106.03
Exercised (1,664,222) 44.71
Lapsed (82,004) 122.08
Outstanding at December 31, 2023 28,569,075 $÷74.52 4.8 $1,073
Exercisable at December 31, 2023 23,921,284 $÷66.90 4.1 $1,064
49
The following table summarizes restricted stock awards and units NOTE 10 — DEBT AND LINES OF CREDIT
activity for the year ended December 31, 2023. The following is a summary of long-term debt at December 31:
Weighted (in millions) 2023 2022
Average
0.875% Notes, due 2023 $÷÷÷÷— $÷1,215
Grant-Date
Share Units Fair Value 3.40% Notes, due 2023 — 1,050
Outstanding at December 31, 2022 10,400,328 $114.59 5-year term loan due 2024 419 446
Granted 5,455,600 106.11 0.10% Notes, due 2024 655 629
Vested (5,069,639) 109.81 2.95% Notes, due 2025 1,000 1,000
Forfeited (508,003) 113.48 3.875% Notes, due 2025 500 500
Outstanding at December 31, 2023 10,278,286 $112.51 1.50% Notes, due 2026 1,266 1,215
3.75% Notes, due 2026 1,700 1,700
The fair market value of restricted stock awards and units vested 0.375% Notes, due 2027 655 629
in 2023, 2022 and 2021 was $536 million, $639 million and 1.15% Notes, due 2028 650 650
$809 million, respectively. 1.40% Notes, due 2030 650 650
The total intrinsic value of options exercised in 2023, 2022 and 4.75% Notes, due 2036 1,650 1,650
2021 was $102 million, $85 million and $393 million, respectively. 6.15% Notes, due 2037 547 547
The total unrecognized compensation cost related to all share- 6.00% Notes, due 2039 515 515
based compensation plans at December 31, 2023 amounted to 5.30% Notes, due 2040 694 694
approximately $450 million, which is expected to be recognized 4.75% Notes, due 2043 700 700
over the next three years.
4.90% Notes, due 2046 3,250 3,250
Total non-cash stock compensation expense charged against income Unamortized debt issuance costs (56) (71)
in 2023, 2022 and 2021 for share-based plans totaled approximately Other, including fair value adjustments
$644 million, $685 million and $640 million, respectively, and the relating to interest rate hedge contracts
tax benefit recognized was approximately $144 million, $170 million designated as fair value hedges (116) (196)
and $267 million, respectively. Stock compensation cost capitalized Total carrying amount of long-term debt 14,679 16,773
as part of inventory is not significant. Less: Current portion 1,080 2,251
The table below summarizes the fair value of an option granted Total long-term portion $13,599 $14,522
in 2023, 2022 and 2021 and the assumptions included in the Black-
Scholes option-pricing model used to estimate the fair value: On November 30, 2023, Abbott repaid the $1.05 billion
outstanding principal amount of its 3.40% Notes upon maturity.
2023 2022 2021 On September 27, 2023, Abbott repaid the €1.14 billion outstanding
Fair value $26.87 $25.26 $24.17 principal amount of its 0.875% Notes upon maturity. The repay-
Risk-free interest rate 4.0% 1.9% 0.8% ment equated to approximately $1.2 billion. In September 2023,
Average life of options (years) 6.0 6.0 6.0 Abbott repaid approximately $197 million of debt assumed as
Volatility 24.4% 23.8% 23.8% part of a recent business acquisition. On March 15, 2022, Abbott
Dividend yield 1.9% 1.6% 1.5% repaid the $750 million outstanding principal amount of its 2.55%
Notes upon maturity.
The risk-free interest rate is based on the rates available at the In December 2021, Abbott repaid a short-term facility for
time of the grant for zero-coupon U.S. government issues with a approximately $195 million. After the repayment, Abbott has no
remaining term equal to the option’s expected life. The average life short-term borrowings.
of an option is based on both historical and projected exercise and
Abbott has readily available financial resources, including
lapsing data. Expected volatility is based on implied volatilities
unused lines of credit that support commercial paper borrowing
from traded options on Abbott’s stock and historical volatility of
arrangements and provide Abbott with the ability to borrow
Abbott’s stock over the expected life of the option. Dividend yield
up to $5 billion on an unsecured basis. The lines of credit as of
is based on the option’s exercise price and annual dividend rate
December 31, 2023 were a part of a Five Year Credit Agreement
at the time of grant.
that Abbott entered into on November 12, 2020. On January 29,
2024, Abbott terminated the 2020 Agreement and entered into a
new Five Year Credit Agreement (Revolving Credit Agreement).
50
There were no outstanding borrowings under the 2020 Agreement Future minimum lease payments under non-cancellable operating
at the time of its termination. Any borrowings under the Revolving leases as of December 31, 2023 were as follows:
Credit Agreement will mature and be payable on January 29, 2029
and will bear interest, at Abbott’s option, based on either a base (in millions)
rate or Secured Overnight Financing Rate (SOFR) rate, plus an 2024 $÷«278
applicable margin based on Abbott’s credit ratings. 2025 246
Principal payments required on long-term debt outstanding at 2026 206
December 31, 2023 are $1.1 billion in 2024, $1.5 billion in 2025, 2027 146
$3.0 billion in 2026, $656 million in 2027, $651 million in 2028 and 2028 110
$8.0 billion in 2029 and thereafter. Thereafter 376
At December 31, 2023, Abbott’s long-term debt rating was AA- by Total future minimum lease payments – undiscounted 1,362
S&P Global Ratings and Aa3 by Moody’s Investors Service. Abbott Less: imputed interest (168)
expects to maintain an investment grade rating. Present value of lease liabilities $1,194
NOTE 11 — LEASES The following table summarizes the amounts and location of
LEASES WHERE ABBOTT IS THE LESSEE operating lease ROU assets and lease liabilities:
Abbott has entered into operating leases as the lessee for office (in millions)
space, manufacturing facilities, R&D laboratories, warehouses, December 31 2023 2022 Balance Sheet Caption
vehicles and equipment. Finance leases are not significant. Operating Lease – $1,122 $1,116 Deferred income taxes
Abbott’s operating leases generally have remaining lease terms ROU Asset and other assets
of 1 to 10 years. Some leases include options to extend beyond the
Operating Lease Liability:
original lease term, generally up to 10 years and some include
options to terminate early. These options have been included in Current $÷«245 $÷«230 Other accrued liabilities
the determination of the lease liability when it is reasonably Non-current 949 943 Post-employment
certain that the option will be exercised. obligations and other
long-term liabilities
For all of its asset classes, Abbott elected the practical expedient Total Liability $1,194 $1,173
allowed under FASB ASC No. 842, “Leases” to account for each
lease component (e.g., the right to use office space) and the
LEASES WHERE ABBOTT IS THE LESSOR
associated non-lease components (e.g., maintenance services)
as a single lease component. Abbott also elected the short-term Certain assets, primarily diagnostics instruments, are leased
lease accounting policy for all asset classes; therefore, Abbott is to customers under contractual arrangements that typically
not recognizing a lease liability or right of use (ROU) asset for include an operating or sales-type lease as well as performance
any lease that, at the commencement date, has a lease term of obligations for reagents and other consumables. Sales-type leases
12 months or less and does not include an option to purchase the are not significant. Contract terms vary by customer and may
underlying asset that Abbott is reasonably certain to exercise. include options to terminate the contract or options to extend the
As Abbott’s leases typically do not provide an implicit rate, contract. Where instruments are provided under operating lease
the interest rate used to determine the present value of the pay- arrangements, some portion or the entire lease revenue may be
ments under each lease typically reflects Abbott’s incremental variable and subject to subsequent non-lease component (e.g.,
borrowing rate based on information available at the lease reagent) sales. The allocation of revenue between the lease and
commencement date. non-lease components is based on standalone selling prices.
Operating lease revenue represented less than 3 percent of
The following table provides information related to Abbott’s Abbott’s total net sales in the years ended December 31, 2023,
operating leases: 2022 and 2021.
(in millions, except weighted averages) 2023 2022 2021 Assets related to operating leases are reported within Net property
Operating lease cost (a) $356 $355 $359 and equipment on the Consolidated Balance Sheet. The original
Cash paid for amounts included in the
cost and the net book value of such assets were $3.9 billion and
measurement of operating lease liabilities 276 274 287 $1.8 billion, respectively, as of December 31, 2023 and $3.6 billion
and $1.6 billion, respectively, as of December 31, 2022.
ROU assets arising from entering into new
operating lease obligations 253 263 343
Weighted average remaining lease term at
December 31 (in years) 7 8 8
Weighted average discount rate at December 31 3.4% 2.9% 2.7%
(a) Includes short-term lease expense and variable lease costs, which were immaterial in the
years ended December 31, 2023, 2022 and 2021.
51
NOTE 12 — FINANCIAL INSTRUMENTS, DERIVATIVES AND currency exposures are primarily the U.S. dollar and European
FAIR VALUE MEASURES currencies. At December 31, 2023 and 2022, Abbott held gross
Certain Abbott foreign subsidiaries enter into foreign currency notional amounts of $13.8 billion and $12.0 billion, respectively, of
forward exchange contracts to manage exposures to changes in such foreign currency forward exchange contracts.
foreign exchange rates primarily for anticipated intercompany Abbott has designated a yen-denominated, 5-year term loan of
purchases by those subsidiaries whose functional currencies are approximately $419 million and $446 million as of December 31,
not the U.S. dollar. These contracts, with gross notional amounts 2023 and December 31, 2022, respectively, as a hedge of the net
totaling $7.3 billion at December 31, 2023, and $7.7 billion at investment in certain foreign subsidiaries. The change in the
December 31, 2022, are designated as cash flow hedges of the value of the debt, which is due to changes in foreign exchange
variability of the cash flows due to changes in foreign exchange rates, is recorded in Accumulated other comprehensive income
rates and are recorded at fair value. Accumulated gains and losses (loss), net of tax.
as of December 31, 2023 will be included in Cost of products sold Abbott is a party to interest rate hedge contracts to manage its
at the time the products are sold, generally through the next exposure to changes in the fair value of fixed-rate debt. These
twelve to eighteen months. contracts are designated as fair value hedges of the variability of
Abbott enters into foreign currency forward exchange contracts the fair value of fixed-rate debt due to changes in the long-term
to manage currency exposures for foreign currency denominated benchmark interest rates. The effect of the hedge is to change a
third-party trade payables and receivables, and for intercompany fixed-rate interest obligation to a variable rate for that portion
loans and trade accounts payable where the receivable or payable of the debt. Abbott records the contracts at fair value and adjusts
is denominated in a currency other than the functional currency the carrying amount of the fixed-rate debt by an offsetting amount.
of the entity. For intercompany loans, the contracts require Abbott Abbott had interest rate contracts totaling approximately
to sell or buy foreign currencies, primarily European currencies, $2.2 billion at December 31, 2023 and $2.9 billion in 2022. The
in exchange for primarily U.S. dollars and European currencies. decrease from 2022 was due to the maturity of $700 million of
For intercompany and trade payables and receivables, the interest rate hedge contracts in 2023 in conjunction with long-
term debt that also matured in 2023.
The following table summarizes the amounts and location of certain derivative financial instruments as of December 31:
Fair Value—Assets Fair Value—Liabilities

(in millions) 2023 2022 Balance Sheet Caption 2023 2022 Balance Sheet Caption
Interest rate swaps designated as fair value hedges:
Non-current $÷«— $— Deferred income taxes $÷95 $136 Post-employment
and other assets obligations and other
long-term liabilities
Current — — Other prepaid expenses — 20 Other accrued liabilities
and receivables
Foreign currency forward exchange contracts:
Hedging instruments 88 304 Other prepaid expenses 134 96 Other accrued liabilities
and receivables
Others not designated as hedges 81 108 Other prepaid expenses 97 130 Other accrued liabilities
and receivables
Debt designated as a hedge of net investment in a — — n/a 419 446 Current portion
foreign subsidiary of long-term debt
(Long-term debt in 2022)
$169 $412 $745 $828
52
The following table summarizes the activity for foreign currency forward exchange contracts designated as cash flow hedges, debt
designated as a hedge of net investment in a foreign subsidiary and certain other derivative financial instruments, as well as the amounts
and location of income (expense) and gain (loss) reclassified into income.
Gain (loss) Recognized in Other Income (expense) and Gain (loss)

Comprehensive Income (loss) Reclassified into Income
(in millions) 2023 2022 2021 2023 2022 2021 Income Statement Caption
Foreign currency forward exchange contracts $(22) $281 $164 $187 $234 $(252) Cost of products sold
designated as cash flow hedges
Debt designated as a hedge of net investment in a 27 75 56 n/a n/a n/a n/a
foreign subsidiary
Interest rate swaps designated as fair value hedges n/a n/a n/a 61 (243) (123) Interest expense
A loss of $44 million and gains of $70 million and $19 million were marked to market, offsetting the effect of marking the interest
recognized in 2023, 2022 and 2021, respectively, related to foreign rate swaps to market.
currency forward exchange contracts not designated as hedges. The carrying values and fair values of certain financial instruments
These amounts are reported in the Consolidated Statement of as of December 31 are shown in the table below. The carrying values
Earnings on the Net foreign exchange (gain) loss line. of all other financial instruments approximate their estimated fair
The interest rate swaps are designated as fair value hedges of values. The counterparties to financial instruments consist of select
the variability of the fair value of fixed-rate debt due to changes major international financial institutions. Abbott does not expect
in the long-term benchmark interest rates. The hedged debt is any losses from nonperformance by these counterparties.
2023 2022
(in millions) Carrying Value Fair Value Carrying Value Fair Value
Long-term Investment Securities:
Equity securities $÷÷÷555 $÷÷÷555 $÷÷÷558 $÷÷÷558
Other 244 244 208 208
Total long-term debt (14,679) (14,769) (16,773) (16,313)
Foreign Currency Forward Exchange Contracts:
Receivable position 169 169 412 412
(Payable) position (231) (231) (226) (226)
Interest Rate Hedge Contracts:
(Payable) position (95) (95) (156) (156)
The fair value of the debt was determined based on significant other observable inputs, including current interest rates.
53
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
Significant Other Significant
Outstanding Quoted Prices in Observable Unobservable
(in millions) Balances Active Markets Inputs Inputs
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 —
Contingent consideration related to business combinations 112 — — 112
Total Liabilities $2,490 $÷«— $2,378 $112
December 31, 2022:
Equity securities $÷«307 $307 $÷÷÷— $÷«—
Total Assets $÷«719 $307 $÷«412 $÷«—
Fair value of hedged long-term debt $2,691 $÷«— $2,691 $÷«—
Interest rate swap derivative financial instruments 156 — 156 —
Contingent consideration related to business combinations 130 — — 130
Total Liabilities $3,203 $÷«— $3,073 $130
The fair value of foreign currency forward exchange contracts is NOTE 13 — LITIGATION AND ENVIRONMENTAL MATTERS
determined using a market approach, which utilizes values for Abbott has been identified as a potentially responsible party for
comparable derivative instruments. The fair value of the debt was investigation and cleanup costs at a number of locations in the
determined based on the face value of the debt adjusted for the fair United States and Puerto Rico under federal and state remediation
value of the interest rate swaps, which is based on a discounted laws and is investigating potential contamination at a number of
cash flow analysis using significant other observable inputs. company-owned locations. Abbott has recorded an estimated
Contingent consideration relates to businesses acquired by cleanup cost for each site for which management believes Abbott
Abbott. The fair value of the contingent consideration was deter- has a probable loss exposure. No individual site cleanup exposure
mined based on independent appraisals at the time of acquisition, is expected to exceed $4 million, and the aggregate cleanup
adjusted for the time value of money and other changes in fair exposure is not expected to exceed $10 million.
value. The decrease in the amount of contingent consideration Abbott is involved in various claims and legal proceedings, and
from December 31, 2022 reflects the impact of projected timeline Abbott estimates the range of possible loss for its legal proceedings
changes for events that will trigger payment of contingent consid- and environmental exposures to be from approximately $30 million
eration, partially offset by additional contingent consideration to $45 million. The recorded accrual balance at December 31, 2023
assumed in a business acquisition in 2023. The maximum amount for these proceedings and exposures was approximately $40 million.
for certain contingent consideration is not determinable as it is This accrual represents management’s best estimate of probable
based on a percent of certain sales. Excluding such contingent loss, as defined by FASB ASC No. 450, “Contingencies.” Within the
consideration, the maximum amount that may be due under the next year, legal proceedings may occur that may result in a change
other contingent consideration arrangements was estimated at in the estimated loss accrued by Abbott. While it is not feasible to
December 31, 2023 to be approximately $190 million, which is predict the outcome of all such proceedings and exposures with
dependent upon attaining certain sales thresholds or upon the certainty, management believes that their ultimate disposition
occurrence of certain events, such as regulatory approvals. should not have a material adverse effect on Abbott’s financial
position, cash flows, or results of operations.
54
NOTE 14 — POST-EMPLOYMENT BENEFITS

Retirement plans consist of defined benefit, defined contribution and medical and dental plans. Information for Abbott’s major defined
benefit plans and post-employment medical and dental benefit plans is as follows:
Defined Benefit Plans Medical and Dental Plans

(in millions) 2023 2022 2023 2022
Projected benefit obligations, January 1 $÷9,167 $12,773 $1,126 $1,566
Service cost — benefits earned during the year 230 374 38 50
Interest cost on projected benefit obligations 455 300 59 36
(Gains) losses, primarily changes in discount rates, plan design changes, law changes
and differences between actual and estimated health care costs 458 (3,645) 35 (437)
Benefits paid (377) (368) (77) (70)
Other, including foreign currency translation 97 (267) — (19)
Projected benefit obligations, December 31 $10,030 $÷9,167 $1,181 $1,126
Plan assets at fair value, January 1 $11,373 $13,468 $÷«302 $÷«370
Actual return (loss) on plan assets 1,611 (1,856) 26 (33)
Company contributions 349 413 37 35
Benefits paid (377) (368) (77) (70)
Other, including foreign currency translation 129 (284) — —
Plan assets at fair value, December 31 $13,085 $11,373 $÷«288 $÷«302
Projected benefit obligations less (greater) than plan assets, December 31 $÷3,055 $÷2,206 $÷(893) $÷(824)
Long-term assets $÷4,164 $÷3,200 $÷÷÷— $÷÷÷—
Short-term liabilities (36) (32) (2) (2)
Long-term liabilities (1,073) (962) (891) (822)
Net asset (liability) $÷3,055 $÷2,206 $÷(893) $÷(824)
Amounts Recognized in Accumulated Other Comprehensive Income (loss):
Actuarial losses, net $÷1,751 $÷1,960 $÷÷«62 $«÷÷27
Prior service costs (credits) 6 (6) (22) (33)
Total $÷1,757 $÷1,954 $÷÷«40 $÷÷÷(6)
The $458 million of defined benefit plan losses and $35 million For plans where the projected benefit obligations exceeded plan
of medical and dental plan losses in 2023 that increased the pro- assets at December 31, 2023 and 2022, the projected benefit
jected benefit obligations primarily reflect the year-over-year obligations and the aggregate plan assets were as follows:
decline in the discount rates used to measure the obligations.
The $3.6 billion of defined benefit plan gains and $437 million of (in millions) 2023 2022
medical and dental plan gains in 2022 that decreased the projected Projected benefit obligation $1,314 $1,270
benefit obligations primarily reflect the year-over-year increase Fair value of plan assets 205 276
in the discount rates used to measure the obligations. The pro-
jected benefit obligations for non-U.S. defined benefit plans were For plans where the accumulated benefit obligations exceeded
$2.6 billion and $2.2 billion at December 31, 2023 and 2022, plan assets at December 31, 2023 and 2022, the aggregate accumu-
respectively. The accumulated benefit obligations for all defined lated benefit obligations, the projected benefit obligations and the
benefit plans were $9.2 billion and $8.4 billion at December 31, aggregate plan assets were as follows:
2023 and 2022, respectively.
(in millions) 2023 2022
Accumulated benefit obligation $1,175 $1,044
Projected benefit obligation 1,248 1,134
Fair value of plan assets 144 141
55
The components of the net periodic benefit cost were as follows:
Defined Benefit Plans Medical and Dental Plans

(in millions) 2023 2022 2021 2023 2022 2021
Service cost — benefits earned during the year $«230 $«374 $«391 $«38 $÷50 $«56
Interest cost on projected benefit obligations 455 300 248 59 36 33
Expected return on plans’ assets (971) (931) (843) (23) (30) (27)
Amortization of actuarial losses (gains) 11 231 317 (2) 11 29
Amortization of prior service costs (credits) 1 1 1 (13) (24) (28)
Total net cost (income) $(274) $÷(25) $«114 $«59 $«43 $«63
In addition, approximately $15 million of income was recognized in The weighted average assumptions used to determine the net
2023 related to the curtailment of a non-U.S. defined benefit plan. cost for defined benefit plans and medical and dental plans are
Other comprehensive income (loss) for each respective year as follows:
includes the amortization of actuarial losses and prior service 2023 2022 2021
costs (credits) as noted in the previous table. Other comprehensive
Discount rate 5.0% 2.7% 2.3%
income (loss) for each respective year also includes: net actuarial
Expected return on plan assets 7.6% 7.5% 7.5%
gains of $182 million for defined benefit plans and a loss of
$33 million for medical and dental plans in 2023; net actuarial Expected aggregate average long-
gains of $858 million for defined benefit plans and a gain of term change in compensation 4.5% 4.4% 4.3%
$374 million for medical and dental plans in 2022, and net actuarial
gains of $1.14 billion for defined benefit plans and a gain of The assumed health care cost trend rates for medical and dental
$45 million for medical and dental plans in 2021. The net actuarial plans at December 31 were as follows:
gains in 2023 related to defined benefit plans are primarily due to 2023 2022 2021
the favorable impact of actual asset returns in excess of expected
Health care cost trend rate
returns, partially offset by the year-over-year decrease in discount assumed for the next year 8% 7% 7%
rates. The net actuarial losses in 2023 related to medical and
Rate that the cost trend rate
dental plans are primarily due to the year-over-year decrease in gradually declines to 5% 5% 5%
discount rates. The net actuarial gains in 2022 were primarily due
Year that rate reaches the
to the year-over-year increase in discount rates, partially offset by assumed ultimate rate 2029 2027 2026
the impact of 2022 actual asset returns being less than expected
returns. The net actuarial gains in 2021 are primarily due to the The discount rates used to measure liabilities were determined
favorable impact of actual 2021 asset returns in excess of expected based on high-quality fixed income securities that match the
returns and the year-over-year increase in discount rates. duration of the expected retiree benefits. The health care cost
The weighted average assumptions used to determine benefit trend rates represent Abbott’s expected annual rates of change in
obligations for defined benefit plans and medical and dental plans the cost of health care benefits and are forward projections of
are as follows: health care costs as of the measurement date.
2023 2022 2021

Discount rate 4.8% 5.0% 2.7%
Expected aggregate average
long-term change in compensation 4.6% 4.5% 4.3%
56
The following table summarizes the bases used to measure the defined benefit and medical and dental plan assets at fair value:
Basis of Fair Value Measurement

Quoted Significant Significant
Outstanding Prices in Other Observable Unobservable Measured
(in millions) Balances Active Markets Inputs Inputs at NAV ( j)
December 31, 2023
Equities:
U.S. large cap (a) $÷3,425 $2,305 $÷÷÷— $— $1,120
U.S. mid and small cap (b) 814 807 — 1 6
International (c) 2,725 493 — — 2,232
Fixed income securities:
U.S. government securities (d) 391 5 371 — 15
Corporate debt instruments (e) 1,519 125 1,055 — 339
Non-U.S. government securities (f ) 586 36 3 — 547
Other (g) 863 322 106 — 435
Absolute return funds (h) 1,669 270 — — 1,399
Cash and Cash Equivalents 276 16 — — 260
Other (i) 1,105 5 — — 1,100
$13,373 $4,384 $1,535 $«1 $7,453
December 31, 2022
Equities:
U.S. large cap (a) $÷2,866 $1,840 $÷÷÷— $— $1,026
U.S. mid and small cap (b) 693 684 — 1 8
International (c) 2,401 454 — — 1,947
Fixed income securities:
U.S. government securities (d) 362 5 341 — 16
Corporate debt instruments (e) 1,318 123 890 — 305
Non-U.S. government securities (f ) 419 16 — — 403
Other (g) 775 297 75 — 403
Absolute return funds (h) 1,678 304 — — 1,374
Cash and Cash Equivalents 154 20 — — 134
Other (i) 1,009 7 — — 1,002
$11,675 $3,750 $1,306 $«1 $6,618
(a) A mix of index funds and actively managed equity accounts that are benchmarked to various large cap indices.
(b) A mix of index funds and actively managed equity accounts that are benchmarked to various mid and small cap indices.
(c) A mix of index funds and actively managed pooled investment funds that are benchmarked to various non-U.S. equity indices in both developed and emerging markets.
(d) A mix of index funds and actively managed accounts that are benchmarked to various U.S. government bond indices.
(e) A mix of index funds and actively managed accounts that are benchmarked to various corporate bond indices.
(f ) Primarily United Kingdom, Canada, Japan and Eurozone government bonds.
(g) Primarily asset backed securities, bank loans, interest rate swap positions and diversified fixed income vehicles benchmarked to SOFR, Sterling Overnight Interbank Average (SONIA)
or EURIBOR.
(h) Primarily hedge funds and funds invested by managers that have a global mandate with the flexibility to allocate capital broadly across a wide range of asset classes and strategies including,
but not limited to equities, fixed income, commodities, interest rate futures, currencies and other securities to outperform an agreed upon benchmark with specific return and volatility targets.
(i) Primarily investments in private funds, such as private equity, private credit, private real estate and private energy funds.
( j) Investments measured at fair value using the net asset value (NAV) practical expedient have not been classified in the fair value hierarchy. The fair value amounts presented in this table are
intended to permit reconciliation of the fair value hierarchy to the amounts presented in the consolidated balance sheet.
57
Equities that are valued using quoted prices are valued at the Abbott funds its domestic pension plans according to U.S. Internal
published market prices. Equities in a common collective trust or Revenue Service (IRS) funding limitations. International pension
a registered investment company are valued at the NAV provided plans are funded according to similar regulations. Abbott funded
by the fund administrator. The NAV is based on the value of the $349 million in 2023 and $413 million in 2022 to defined pension
underlying assets owned by the fund minus its liabilities. For plans. Abbott expects to contribute approximately $350 million to
approximately half of these funds, investments may be redeemed its pension plans in 2024.
once per week or month, with a required 2 to 30 day notice period. Total benefit payments expected to be paid to participants, which
For the remaining funds, daily redemption of an investment is includes payments funded from company assets, as well as paid
allowed. Fixed income securities that are valued using significant from the plans, are as follows:
other observable inputs are valued at prices obtained from inde-
pendent financial service industry recognized vendors. Abbott Defined Medical and
did not have any unfunded commitments related to fixed income (in millions) Benefit Plans Dental Plans
funds at December 31, 2023 and 2022. Fixed income securities in 2024 $÷«395 $÷65
a common collective trust or a registered investment company 2025 414 67
are valued at the NAV provided by the fund administrator. For
2026 434 70
the majority of these funds, investments may be redeemed either
2027 457 73
weekly or monthly, with a required 2 to 60 day notice period.
For the remaining funds, investments may be generally 2028 479 77
redeemed daily. 2029 to 2033 2,757 425
Absolute return funds are valued at the NAV provided by the The Abbott Stock Retirement Plan is the principal defined contri-
fund administrator. All private funds are valued at the NAV pro- bution plan. Abbott’s contributions to this plan were $199 million
vided by the fund on a one-quarter lag adjusted for known cash in 2023, $190 million in 2022 and $181 million in 2021.
flows and significant events through the reporting date. Abbott
did not have any unfunded commitments related to absolute NOTE 15 — TAXES ON EARNINGS
return funds at December 31, 2023 and 2022. Investments in these
Taxes on earnings reflect the annual effective rates, including
funds may be generally redeemed monthly or quarterly with
charges for interest and penalties. Deferred income taxes reflect
required notice periods ranging from 45 to 90 days. For approxi-
the tax consequences on future years of differences between the
mately $280 million and $250 million of the absolute return funds,
tax bases of assets and liabilities and their financial reporting
redemptions are subject to a 33 percent gate and a 25 percent
amounts.
gate, respectively, and $80 million is subject to a lock until 2025.
Investments in the private funds cannot be redeemed but the Taxes on earnings include approximately $22 million, $43 million
funds will make distributions through liquidation. The estimate and $145 million in excess tax benefits associated with share-
of the liquidation period for each fund ranges from 2024 to 2033. based compensation in 2023, 2022 and 2021, respectively. As a
Abbott’s unfunded commitment in these funds was $555 million result of the resolution of various tax positions related to prior
and $569 million as of December 31, 2023 and 2022, respectively. years, taxes on earnings in 2023, 2022 and 2021 also include
approximately $80 million and $20 million of net tax expense and
The investment mix of equity securities, fixed income and other
$55 million of net tax benefits, respectively.
asset allocation strategies is based upon achieving a desired return,
as well as balancing higher return, more volatile equity securities The TCJA includes a one-time transition tax that is based on
with lower return, less volatile fixed income securities. Investment Abbott’s total post-1986 earnings and profits (E&P) that were previ-
allocations are made across a range of markets, industry sectors, ously deferred from U.S. income taxes. The tax computation also
capitalization sizes, and in the case of fixed income securities, requires the determination of the amount of post-1986 E&P consid-
maturities and credit quality. The plans do not directly hold any ered held in cash and other specified assets. As of December 31,
securities of Abbott. There are no known significant concentrations 2023, the remaining balance of Abbott’s transition tax obligation
of risk in the plans’ assets. Abbott’s medical and dental plans’ assets related to the TCJA is approximately $598 million, which will be
are invested in a similar mix as the pension plan assets. The actual paid over the next three years as allowed by the TCJA.
asset allocation percentages at year end are consistent with the Undistributed foreign earnings remain indefinitely reinvested in
company’s targeted asset allocation percentages. foreign operations. Determining the amount of unrecognized
deferred tax liability related to any remaining undistributed foreign
The plans’ expected return on assets, as shown above, is based
earnings not subject to the transition tax and additional outside
on management’s expectations of long-term average rates of
basis difference in its foreign entities is not practicable.
return to be achieved by the underlying investment portfolios.
In establishing this assumption, management considers historical In the U.S., Abbott’s federal income tax returns through 2016 are
and expected returns for the asset classes in which the plans are settled. In September 2023, Abbott received a Statutory Notice of
invested, as well as current economic and capital market conditions. Deficiency (SNOD) from the IRS for the 2019 Federal tax year in
the amount of $417 million. The primary adjustments proposed
in the SNOD relate to the reallocation of income between Abbott’s
U.S. entities and its foreign affiliates. Abbott believes that the
income reallocation adjustments proposed in the SNOD are
without merit, in part because certain adjustments contradict
methods that were agreed to with the IRS in prior audit periods.
58
The SNOD also contains other proposed adjustments that Abbott Differences between the effective income tax rate and the U.S.
believes are erroneous and unsupported. Abbott filed a petition statutory tax rate were as follows:
with the U.S. Tax Court contesting the SNOD in December of 2023.
2023 2022 2021
Abbott’s 2017 and 2018 Federal tax years are also currently under Statutory tax rate on earnings 21.0% 21.0% 21.0%
examination by the IRS with respect to income reallocation issues Impact of foreign operations (3.6)÷« (2.5)÷« (3.9)÷«
similar to those included in the 2019 Federal tax year. Abbott
Foreign-derived intangible income
intends to vigorously defend its filing positions through ongoing benefit (2.2)÷« (2.0)÷« (1.1)÷«
discussions with the IRS, the IRS independent appeals process
Domestic impairment loss —÷÷ —÷÷« (0.1)÷«
and/or through litigation as necessary.
Excess tax benefits related to stock
Abbott reserves for uncertain tax positions related to unresolved compensation (0.3)÷« (0.5)÷« (1.7)÷«
matters with the IRS and other taxing authorities. Abbott contin- Research tax credit (1.1)÷« (0.9)÷« (0.6)÷«
ues to believe that its reserves for uncertain tax positions are Resolution of certain tax positions
appropriate. pertaining to prior years 1.2÷« 0.2÷« (0.7)÷«
There are numerous other income tax jurisdictions for which Intercompany restructurings and
tax returns are not yet settled, none of which Abbott expects to integration (1.4)÷« —÷÷ 0.1÷«
be individually significant. Reserves for interest and penalties State taxes, net of federal benefit 0.5÷« 0.7÷« 0.4÷«
are not significant. All other, net —÷« 0.5÷« 0.5÷«
The Organization for Economic Cooperation & Development Effective tax rate on earnings 14.1% 16.5% 13.9%
(OECD) has proposed a two-pillared plan for a revised international
tax system. Pillar 1 proposes to reallocate taxing rights among the Impact of foreign operations is primarily derived from operations
jurisdictions in which in-scope multinational corporations operate. in Puerto Rico, Switzerland, Ireland, the Netherlands, Costa Rica,
Abbott is continuing to analyze the Pillar 1 proposal. Pillar 2 Singapore, Malta and Malaysia.
proposes to assess a 15 percent minimum tax on the earnings of The tax effect of the differences that give rise to deferred tax
in-scope multinational corporations on a country-by-country assets and liabilities were as follows:
basis. Numerous countries have enacted legislation to adopt the
Pillar 2 model rules with a subset of the rules becoming effective (in millions) 2023 2022
January 1, 2024, and the remaining rules becoming effective Deferred tax assets:
January 1, 2025, or in later periods. Abbott is also continuing to Compensation and employee benefits $÷÷÷«89 $÷÷230
analyze the Pillar 2 model rules. Implementation of the OECD Trade receivable reserves 221 227
proposal may have a material impact on Abbott’s Consolidated
Research and development costs 568 319
Financial Statements in the future.
Inventory reserves 198 187
Earnings before taxes, and the related provisions for taxes on Lease liabilities 272 263
earnings, were as follows: Deferred intercompany profit 283 260
(in millions) 2023 2022 2021 NOLs, reserves not currently deductible,
credit carryforwards and other 9,922 2,402
Earnings Before Taxes:
Total deferred tax assets before valuation
Domestic $1,192 $3,732 $3,264
allowance 11,553 3,888
Foreign 5,472 4,574 4,947
Valuation allowance (8,690) (1,169)
Total $6,664 $8,306 $8,211
Total deferred tax assets 2,863 2,719
(in millions) 2023 2022 2021 Deferred tax liabilities:

Taxes on Earnings: Depreciation (414) (376)
Current: Right of Use lease assets (258) (252)
Domestic $÷«528 $1,309 $÷«859 Other, primarily the excess of book basis over
tax basis of intangible assets (1,777) (2,038)
Foreign 874 723 790
Total deferred tax liabilities (2,449) (2,666)
Total current 1,402 2,032 1,649
Total net deferred tax assets (liabilities) $÷÷«414 $÷÷÷53
Deferred:
Domestic (382) (610) (355)
Abbott has incurred losses in a foreign jurisdiction where realiza-
Foreign (79) (49) (154) tion of the future economic benefit was, in previous reporting
Total deferred (461) (659) (509) periods, considered so remote that the benefit was not recognized
Total $÷«941 $1,373 $1,140 as a deferred tax asset. In 2023, Abbott concluded that the future
economic benefit of the incurred losses is no longer remote and
therefore, a deferred tax asset was recognized. Abbott also con-
cluded that it is not more likely than not that the tax benefit
associated with the deferred tax asset will be realized; therefore,
an offsetting valuation allowance was recognized.
59
The following table summarizes the gross amounts of unrecognized Abbott’s underlying accounting records are maintained on a
tax benefits without regard to reduction in tax liabilities or addi- legal entity basis for government and public reporting require-
tions to deferred tax assets and liabilities if such unrecognized tax ments. Segment disclosures are on a performance basis consistent
benefits were settled: with internal management reporting. The cost of some corporate
functions and the cost of certain employee benefits are charged
(in millions) 2023 2022 to segments at predetermined rates that approximate cost.
January 1 $2,036 $1,908 Remaining costs, if any, are not allocated to segments. In addition,
Increase due to current year tax positions 225 154 intangible asset amortization is not allocated to operating
Increase due to prior year tax positions 1,338 108 segments, and intangible assets and goodwill are not included
Decrease due to prior year tax positions (89) (115) in the measure of each segment’s assets.
Settlements (144) 3 The following segment information has been prepared in
Lapse of statute (43) (22) accordance with the internal accounting policies of Abbott, as
December 31 $3,323 $2,036 described above, and are not presented in accordance with
generally accepted accounting principles applied to the
Abbott’s unrecognized tax benefits table includes amounts related consolidated financial statements.
to tax positions for which a deferred tax asset has not been recog-
Net Sales to External
nized because the recognition of the future benefit is not expected.
Customers (a) Operating Earnings (a)
In 2023, Abbott’s unrecognized tax benefits increased by $1.3 billion
(in millions) 2023 2022 2021 2023 2022 2021
to $3.32 billion, which includes $2.06 billion attributable to tax
positions that, if recognized, would result in a deferred tax asset Established
Pharmaceutical
and a related valuation allowance.
Products $÷5,066 $÷4,912 $÷4,718 $÷1,206 $÷1,049 $÷÷«889
The total amount of unrecognized tax benefits that, if recognized, Nutritional
would impact the effective tax rate is approximately $1.22 billion. Products 8,154 7,459 8,294 1,333 706 1,763
Abbott believes that it is reasonably possible that the recorded Diagnostic
amount of gross unrecognized tax benefits may decrease between Products (b) 9,988 16,469 15,526 2,433 6,640 6,237
$70 million and $1.48 billion, including cash adjustments, within Medical Devices (b) 16,887 14,802 14,485 5,306 4,436 4,533
the next twelve months as a result of concluding various domestic Total Reportable
and international tax matters. Segments 40,095 43,642 43,023 $10,278 $12,831 $13,422
NOTE 16 — SEGMENT AND GEOGRAPHIC AREA INFORMATION Other 14 11 52
Total $40,109 $43,653 $43,075
Abbott’s principal business is the discovery, development, manu-
facture and sale of a broad line of health care products. Abbott’s (a) In 2023 and 2022, foreign exchange unfavorably impacted net sales and operating
earnings. In 2021, foreign exchange favorably impacted net sales and unfavorably
products are generally sold directly to retailers, wholesalers, impacted operating earnings.
hospitals, health care facilities, laboratories, physicians’ offices
(b) 2022 and 2021 Sales and Operating Earnings for the Diagnostic Products and Medical
and government agencies throughout the world. Devices reportable segments have been updated to reflect the internal transfer of the
Acelis Connected Health business from Diagnostic Products to Medical Devices on
Abbott’s reportable segments are as follows: January 1, 2023.
Established Pharmaceutical Products—International sales of a
broad line of branded generic pharmaceutical products. (in millions) 2023 2022 2021
Nutritional Products—Worldwide sales of a broad line of adult Total Reportable Segment
Operating Earnings $10,278 $12,831 $13,422
and pediatric nutritional products.
Corporate functions and
Diagnostic Products—Worldwide sales of diagnostic systems benefit plan costs (308) (509) (801)
and tests for blood banks, hospitals, commercial laboratories Net interest expense (252) (375) (490)
and alternate-care testing sites. For segment reporting purposes, Share-based compensation (644) (685) (640)
the Core Laboratory Diagnostics, Rapid Diagnostics, Molecular
Amortization of intangible assets (1,966) (2,013) (2,047)
Diagnostics and Point of Care Diagnostics businesses are aggre-
gated and reported as the Diagnostic Products segment. Other, net (c) (444) (943) (1,233)
Earnings before Taxes $÷6,664 $÷8,306 $÷8,211
Medical Devices—Worldwide sales of rhythm management,
electrophysiology, heart failure, vascular, structural heart, neuro- (c) Other, net includes costs directly related to integrating acquired businesses and restructur-
ing charges in 2023, 2022, and 2021. Charges and expenses for restructuring actions and
modulation and diabetes care products. For segment reporting other cost reduction initiatives were approximately $122 million in 2023, $265 million in
purposes, the Cardiac Rhythm Management, Electrophysiology, 2022, and $375 million in 2021. Other, net in 2023 also includes charges of $100 million
Heart Failure, Vascular, Structural Heart, Neuromodulation and related to indefinite-lived intangible asset impairments, partially offset by income arising
from fair value changes in contingent consideration related to previous business acquisi-
Diabetes Care divisions are aggregated and reported as the tions. Other, net in 2022 also includes $176 million of charges related to a voluntary
Medical Devices segment. 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.
60
Additions to
Depreciation Property and Equipment (d) Total Assets
(in millions) 2023 2022 2021 2023 2022 2021 2023 2022 2021
Established Pharmaceuticals $÷«104 $÷÷«97 $÷÷«94 $÷«185 $÷«175 $÷«169 $÷3,118 $÷2,883 $÷s2,789
Nutritionals 155 155 151 457 251 174 4,270 3,625 3,425
Diagnostics 499 494 760 750 832 980 7,767 7,985 7,699
Medical Devices 315 311 285 604 335 348 9,029 7,844 7,261
Total Reportable Segments 1,073 1,057 1,290 1,996 1,593 1,671 $24,184 $22,337 $21,174
Other 204 197 201 213 182 201
Total $1,277 $1,254 $1,491 $2,209 $1,775 $1,872
(in millions) 2023 2022

Total Reportable Segment Assets $24,184 $22,337
Cash and investments 8,078 10,936
Goodwill and intangible assets 32,494 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) 2023 2022 2021
United States $15,452 $18,142 $16,642
Germany 2,345 2,340 2,572
China 2,253 2,133 2,392
India 1,750 1,649 1,561
Switzerland 1,638 1,336 1,313
Japan 1,513 1,932 1,695
Netherlands 1,074 1,111 1,174
All Other Countries 14,084 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 respectively, and in the United States such assets totaled
and equipment. It excludes goodwill, intangible assets, deferred $8.9 billion and $7.7 billion, respectively. Long-lived asset balances
tax assets, and financial instruments. At December 31, 2023 and associated with other countries were not material on an individual
2022, long-lived assets totaled $16.2 billion and $14.2 billion, country basis in either of the two years.
61
MANAGEMENT REPORT ON INTERNAL REPORT OF INDEPENDENT REGISTERED

CONTROL OVER FINANCIAL REPORTING PUBLIC ACCOUNTING FIRM
The management of Abbott Laboratories is responsible for estab- To the Shareholders and the Board of Directors of Abbott Laboratories
lishing and maintaining adequate internal control over financial
reporting. Abbott’s internal control system was designed to pro- OPINION ON THE FINANCIAL STATEMENTS
vide reasonable assurance to the company’s management and We have audited the accompanying consolidated balance sheets
board of directors regarding the preparation and fair presentation of Abbott Laboratories and subsidiaries (the Company) as of
of published financial statements. December 31, 2023 and 2022, the related consolidated statements
All internal control systems, no matter how well designed, have of earnings, comprehensive income, shareholders’ investment
inherent limitations. Therefore, even those systems determined to and cash flows for each of the three years in the period ended
be effective can provide only reasonable assurance with respect to December 31, 2023, and the related notes (collectively referred
financial statement preparation and presentation. to as the “consolidated financial statements”). In our opinion, the
consolidated financial statements present fairly, in all material
Abbott’s management assessed the effectiveness of the company’s respects, the financial position of the Company at December 31,
internal control over financial reporting as of December 31, 2023. 2023 and 2022, and the results of its operations and its cash flows
In making this assessment, it used the criteria set forth in Internal for each of the three years in the period ended December 31, 2023,
Control — Integrated Framework (2013) issued by the Committee in conformity with U.S. generally accepted accounting principles.
of Sponsoring Organizations of the Treadway Commission. Based
on our assessment, we believe that, as of December 31, 2023, the We also have audited, in accordance with the standards of the
company’s internal control over financial reporting was effective Public Company Accounting Oversight Board (United States)
based on those criteria. (PCAOB), the Company’s internal control over financial reporting
as of December 31, 2023, based on criteria established in Internal
Abbott’s independent registered public accounting firm has issued Control-Integrated Framework issued by the Committee of
an audit report on their assessment of the effectiveness of the Sponsoring Organizations of the Treadway Commission (2013
company’s internal control over financial reporting. This report framework), and our report dated February 16, 2024 expressed
appears on page 64. an unqualified opinion thereon.
Robert B. Ford
Chairman of the Board and Chief Executive Officer BASIS FOR OPINION
Philip P. Boudreau These financial statements are the responsibility of the Company’s
Senior Vice President, Finance and Chief Financial Officer management. Our responsibility is to express an opinion on the
Company’s financial statements based on our audits. We are a
John A. McCoy, Jr. public accounting firm registered with the PCAOB and are required
Vice President, Finance and Controller to be independent with respect to the Company in accordance with
February 16, 2024 the U.S. federal securities laws and the applicable rules and regula-
tions of the Securities and Exchange Commission and the PCAOB.
We conducted our audits in accordance with the standards of the
PCAOB. Those standards require that we plan and perform the
audit to obtain reasonable assurance about whether the financial
statements are free of material misstatement, whether due to
error or fraud. Our audits included performing procedures to
assess the risks of material misstatement of the financial state-
ments, whether due to error or fraud, and performing procedures
that respond to those risks. Such procedures included examining,
on a test basis, evidence regarding the amounts and disclosures in
the financial statements. Our audits also included evaluating the
accounting principles used and significant estimates made by
management, as well as evaluating the overall presentation of the
financial statements. We believe that our audits provide a reason-
able basis for our opinion.
62
CRITICAL AUDIT MATTER With the support of our tax professionals, among other audit
The critical audit matter communicated below is a matter arising procedures performed, we evaluated the reasonableness of man-
from the current period audit of the financial statements that was agement’s judgment with respect to the interpretation of tax laws
communicated or required to be communicated to the audit com- of multiple jurisdictions by reading and evaluating management’s
mittee and that: (1) relates to accounts or disclosures that are documentation, including relevant accounting policies, and by
material to the financial statements and (2) involved our especially considering how tax law, including statutes, regulations, and
challenging, subjective or complex judgments. The communication case law, affected management’s judgments. We tested the com-
of the critical audit matter does not alter in any way our opinion on pleteness of management’s assessment of the identification of
the consolidated financial statements, taken as a whole, and we are unrecognized tax benefits and possible outcomes related to it
not, by communicating the critical audit matter below, providing a including evaluation of technical merits of the unrecognized tax
separate opinion on the critical audit matter or on the accounts or benefits. We also tested the appropriateness and consistency of
disclosures to which it relates. management’s methods and significant assumptions associated
with the measurement of unrecognized tax benefits, including
Income taxes – Unrecognized tax benefits assessing the estimated amount of tax liability that may be incurred
Description of the Matter should the tax position not be sustained upon inspection by a tax
authority.
As described in Note 15 to the consolidated financial statements,
unrecognized tax benefits were approximately $3.3 billion at /s/ Ernst & Young LLP
December 31, 2023. Unrecognized tax benefits are assessed by We have served as the Company’s auditor since 2013.
management quarterly for identification and measurement, or
more frequently if there are any indicators suggesting a change Chicago, Illinois
in unrecognized tax benefits. Assessing tax positions involves February 16, 2024
judgment including interpreting tax laws of multiple jurisdictions
and assumptions relevant to the measurement of an unrecognized
tax benefit, including the estimated amount of tax liability that
may be incurred should the tax position not be sustained upon
inspection by a tax authority. These judgments and assumptions
can significantly affect unrecognized tax benefits.
How We Addressed the Matter in our Audit
We obtained an understanding, evaluated the design and tested
the operating effectiveness of controls over the Company’s identi-
fication and measurement of unrecognized tax benefits, as well
as its process for the assessment of events that may indicate a
change in unrecognized tax benefits is warranted. For example,
we tested controls over management’s review of the completeness
of identified unrecognized tax benefits, as well as controls over
management’s review of significant assumptions used within the
measurement of unrecognized tax benefits.
63
REPORT OF INDEPENDENT REGISTERED

PUBLIC ACCOUNTING FIRM
To the Shareholders and the Board of Directors of Abbott Laboratories DEFINITION AND LIMITATIONS OF INTERNAL CONTROL
OVER FINANCIAL REPORTING
OPINION ON INTERNAL CONTROL
A company’s internal control over financial reporting is a process
OVER FINANCIAL REPORTING
designed to provide reasonable assurance regarding the reliability
We have audited Abbott Laboratories and subsidiaries’ internal of financial reporting and the preparation of financial statements
control over financial reporting as of December 31, 2023, based for external purposes in accordance with generally accepted
on criteria established in Internal Control—Integrated Framework accounting principles. A company’s internal control over financial
issued by the Committee of Sponsoring Organizations of the reporting includes those policies and procedures that (1) pertain
Treadway Commission (2013 framework) (the COSO criteria). In to the maintenance of records that, in reasonable detail, accurately
our opinion, Abbott Laboratories and subsidiaries (the Company) and fairly reflect the transactions and dispositions of the assets of
maintained, in all material respects, effective internal control over the company; (2) provide reasonable assurance that transactions
financial reporting as of December 31, 2023, based on the COSO are recorded as necessary to permit preparation of financial
criteria. statements in accordance with generally accepted accounting
We also have audited, in accordance with the standards of the principles, and that receipts and expenditures of the company are
Public Company Accounting Oversight Board (United States) being made only in accordance with authorizations of management
(PCAOB), the consolidated balance sheets of the Company as of and directors of the company; and (3) provide reasonable assur-
December 31, 2023 and 2022, the related consolidated statements ance regarding prevention or timely detection of unauthorized
of earnings, comprehensive income, shareholders’ investment acquisition, use, or disposition of the company’s assets that could
and cash flows for each of the three years in the period ended have a material effect on the financial statements.
December 31, 2023, and the related notes and our report dated Because of its inherent limitations, internal control over financial
February 16, 2024 expressed an unqualified opinion thereon. reporting may not prevent or detect misstatements. Also, projec-
tions of any evaluation of effectiveness to future periods are subject
BASIS FOR OPINION
to the risk that controls may become inadequate because of changes
The Company’s management is responsible for maintaining in conditions, or that the degree of compliance with the policies or
effective internal control over financial reporting and for its procedures may deteriorate.
assessment of the effectiveness of internal control over financial
/s/ Ernst & Young LLP
reporting included in the accompanying Management Report on
Internal Control Over Financial Reporting. Our responsibility is to Chicago, Illinois
express an opinion on the Company’s internal control over finan- February 16, 2024
cial reporting based on our audit. We are a public accounting firm
registered with the PCAOB and are required to be independent
with respect to the Company in accordance with the U.S. federal
securities laws and the applicable rules and regulations of the
Securities and Exchange Commission and the PCAOB.
We conducted our audit in accordance with the standards of
the PCAOB. Those standards require that we plan and perform
the audit to obtain reasonable assurance about whether effective
internal control over financial reporting was maintained in all
material respects.
Our audit included obtaining an understanding of internal con-
trol over financial reporting, assessing the risk that a material
weakness exists, testing and evaluating the design and operating
effectiveness of internal control based on the assessed risk, and
performing such other procedures as we considered necessary
in the circumstances. We believe that our audit provides a reason-
able basis for our opinion.
64
FINANCIAL INSTRUMENTS AND RISK MANAGEMENT
MARKET PRICE SENSITIVE INVESTMENTS FOREIGN CURRENCY SENSITIVE FINANCIAL INSTRUMENTS

The fair value of equity securities held by Abbott with a readily Certain Abbott foreign subsidiaries enter into foreign currency
determinable fair value was approximately $12 million and forward exchange contracts to manage exposures to changes in
$9 million as of December 31, 2023 and 2022, respectively. These foreign exchange rates for anticipated intercompany purchases
equity securities are subject to potential changes in fair value. by those subsidiaries whose functional currencies are not the U.S.
A hypothetical 20 percent decrease in the share prices of these dollar. These contracts are designated as cash flow hedges of the
investments would decrease their fair value at December 31, 2023 variability of the cash flows due to changes in foreign currency
by approximately $2 million. Changes in the fair value of these exchange rates and are marked-to-market with the resulting gains
securities are recorded in earnings. The fair value of investments or losses reflected in Accumulated other comprehensive income
in mutual funds that are held in a rabbi trust for the purpose of (loss). Gains or losses will be included in Cost of products sold
paying benefits under a deferred compensation plan was approxi- at the time the products are sold, generally within the next twelve
mately $314 million and $298 million as of December 31, 2023 and to eighteen months. At December 31, 2023 and 2022, Abbott held
2022, respectively. Changes in the fair value of these investments, $7.3 billion and $7.7 billion of notional values, respectively, of
as well as an offsetting change in the benefit obligation, are such contracts. Contracts held at December 31, 2023 will mature
recorded in earnings. in 2024 or 2025 depending on the contract. Contracts held at
December 31, 2022 matured in 2023 or will mature in 2024
NON-PUBLICLY TRADED EQUIT Y SECURITIES depending upon the contract.
Abbott holds equity securities that are not traded on public Abbott enters into foreign currency forward exchange contracts
stock exchanges. The carrying value of these investments was to manage its exposure to foreign currency denominated inter-
$88 million and $83 million as of December 31, 2023 and 2022, company loans and trade payables and third-party trade payables
respectively. No individual investment is recorded at a value in and receivables. The contracts are marked-to-market, and result-
excess of $20 million. Abbott measures these investments at cost ing gains or losses are reflected in income and are generally offset
minus impairment, if any, plus or minus changes resulting from by losses or gains on the foreign currency exposure being managed.
observable price changes in orderly transactions for the identical At December 31, 2023 and 2022, Abbott held $13.8 billion and
or a similar investment of the same issuer. $12.0 billion of notional values, respectively, of such contracts,
INTEREST RATE SENSITIVE FINANCIAL INSTRUMENTS
which mature within 13 months.
At December 31, 2023 and 2022, Abbott had interest rate hedge Abbott has designated a yen-denominated, 5-year term loan of
contracts with notional values totaling $2.2 billion and $2.9 billion, approximately $419 million and $446 million as of December 31,
respectively, to manage its exposure to changes in the fair value of 2023 and December 31, 2022, respectively, as a hedge of the net
debt. The effect of these hedges is to change the fixed interest rate investment in certain foreign subsidiaries. The change in the
to a variable rate for the portion of the debt that is hedged. Abbott value of the debt, which is due to changes in foreign exchange
does not use derivative financial instruments, such as interest rates, is recorded in Accumulated other comprehensive income
rate swaps, to manage its exposure to changes in interest rates (loss), net of tax.
for its investment securities. The fair value of long-term debt at
December 31, 2023 and 2022 amounted to $14.8 billion and
$16.3 billion, respectively (average interest rates of 3.6% and 3.5%
as of December 31, 2023 and 2022, respectively) with maturities
through 2046. At December 31, 2023 and 2022, the fair value of
current and long-term investment securities amounted to approxi-
mately $1.2 billion and $1.1 billion, respectively. A hypothetical
100-basis point change in the interest rates would not have a
material effect on cash flows, income or fair values.
The following table reflects the total foreign currency forward exchange contracts outstanding at December 31, 2023 and 2022:
2023 2022
Fair and Fair and
Weighted Carrying Weighted Carrying
Average Value Average Value
Contract Exchange Receivable/ Contract Exchange Receivable/
(dollars in millions) Amount Rate (Payable) Amount Rate (Payable)
Primarily U.S. dollars to be exchanged for
the following currencies:
Euro $÷9,221 1.0865 $(35) $÷7,656 1.0664 $÷92
Chinese Yuan 2,115 7.0785 3 2,264 6.8825 12
Japanese Yen 1,635 138.2288 24 1,797 133.0344 (7)
All other currencies 8,189 n/a (54) 8,029 n/a 89
Total $21,160 $(62) $19,746 $186
65
FINANCIAL REVIEW
Abbott’s revenues are derived primarily from the sale of a broad While Abbott’s total sales over the last three years were most
line of health care products, which include medical devices, significantly affected by the impacts of the COVID-19 pandemic,
diagnostic testing products, nutritional products and branded sales over this period also reflect the introduction of new products
generic pharmaceuticals. These products are sold under short- across various businesses, as well as higher sales of various
term receivable arrangements. Patent protection and licenses, existing products. Sales in emerging markets, which represent
technological and performance features, and inclusion of Abbott’s approximately 38 percent of total company sales, increased
products under a contract most impact which products are sold; 5.4 percent in 2023 and 5.6 percent in 2022, excluding the impact
price controls, competition and rebates most impact the net selling of foreign exchange. (Emerging markets include all countries,
prices of products; and the measurement of net sales and costs is except the United States, Japan, Canada, Australia, New Zealand
impacted by foreign currency translation. Sales in international and Western European countries.)
markets comprise 61 percent of consolidated net sales. In U.S. Pediatric Nutritionals, Abbott initiated a voluntary recall
Over the period from 2020 through 2023, the coronavirus in February 2022 of certain infant powder formula products
(COVID-19) pandemic affected Abbott’s diversified health care manufactured at its facility in Sturgis, Michigan and stopped
businesses in various ways. Abbott’s Diagnostics segment experi- production at the facility. On May 16, 2022, Abbott entered into a
enced the most significant change in sales from 2020 to 2023 consent decree with the U.S. Food and Drug Administration (FDA)
as a result of the COVID-19 pandemic. (The Diagnostics segment on the steps necessary to resume production and maintain the
includes the Rapid Diagnostics, Core Laboratory Diagnostics, Sturgis facility and operations. On July 1, 2022, Abbott restarted
Molecular Diagnostics and Point of Care Diagnostics businesses.) partial production at the facility beginning with its specialty for-
After mobilizing its teams across multiple fronts in 2020 and 2021, mula EleCare® and metabolic formulas. Subsequently, Abbott
Abbott developed and launched multiple types of new diagnostic restarted Similac® production. The consent decree does not affect
tests to detect COVID-19. Tests were launched in the U.S. pursuant any other Abbott plants or operations.
to Emergency Use Authorizations (EUA) and in countries outside In 2022, Abbott took various actions to mitigate the impact of
of the U.S. pursuant to CE Marks. the recall on the supply of formula in the U.S. The 2022 actions
During the pandemic, COVID-19 testing-related sales grew to included the shipment of infant formula powder into the U.S. from
17.8 percent and 19.2 percent of Abbott’s sales in 2021 and 2022, Abbott’s FDA-registered facility in Ireland; prioritization of infant
respectively. Abbott’s COVID-19 testing-related sales totaled formula production at its Columbus, Ohio facility; conversion of
approximately $7.7 billion in 2021 and $8.4 billion in 2022, led by other liquid manufacturing lines into manufacturing Similac
sales related to Abbott’s BinaxNOW, Panbio and ID NOW rapid liquid ready-to-feed product; increased production of powder
testing platforms. Demand for COVID-19 tests was volatile during infant formula at its Casa Grande, Arizona manufacturing site;
the pandemic as the number of COVID-19 cases, especially in the and importation of product from its facility in Spain as permitted
U.S., fluctuated during this period. by the FDA.
In 2023, the pandemic shifted to an endemic state and the U.S. In 2023, as Abbott’s production of infant formula increased in
federal public health emergency expired, resulting in significantly the U.S., Abbott made progress toward recovering market share
lower demand for COVID-19 tests. In 2023, Abbott’s COVID-19 in this business. In the fourth quarter of 2023, Abbott returned to
testing-related sales totaled approximately $1.6 billion, of which having the market-leading position in the U.S., as measured on
$730 million occurred in the first quarter of 2023. Demand for a volume basis.
COVID-19 tests is expected to continue to be unpredictable in Over the last three years, Abbott’s operating margin as a percent-
2024. age of sales decreased from 19.6 percent in 2021 to 19.2 percent in
With respect to other products sold by the Diagnostics segment, 2022 and 16.2 percent in 2023. The decrease in 2023 from 2021
demand for routine diagnostic testing generally fluctuated reflects the unfavorable effects of lower COVID-19 testing-related
throughout the pandemic with changes in the number of sales, foreign exchange, and higher costs for various manufactur-
COVID-19 cases in various geographic regions. Across Abbott’s ing inputs. The decrease in 2022 from 2021 reflects the impact of
cardiovascular and neuromodulation businesses, procedure the voluntary infant product recall and manufacturing stoppage in
volumes were negatively impacted during the pandemic by U.S. Pediatric Nutritionals and the impact of inflation and supply
surges of COVID-19 in various geographies as well as intermittent chain challenges on various manufacturing inputs and transporta-
COVID-19 lockdown restrictions and healthcare staffing chal- tion costs across Abbott’s businesses. In both 2023 and 2022, these
lenges. Despite such challenges, overall volume trends improved unfavorable effects were partially offset by the favorable impact
in several cardiovascular businesses and in routine diagnostic of margin improvement initiatives.
testing in 2022 and that growth continued in 2023. While Abbott’s While Abbott experienced availability issues with some services
branded generic pharmaceuticals business was also negatively and materials used in its products over the last three years, Abbott
affected by the pandemic in 2020 as COVID-19 spread across was able to manage the various supply chain challenges without
emerging market countries, volumes recovered and grew over significant supply disruption or shortage for services, raw materials
the 2021 to 2023 period. Abbott’s nutritional and diabetes care and supplies. While Abbott experienced inflationary pressures
businesses were the least affected by the pandemic. on various raw materials, packaging materials and transportation
costs over the last three years, the impact of such cost increases
was partially mitigated by price increases in certain businesses
and the impact of continued gross margin improvement initiatives.
66
FINANCIAL REVIEW
With respect to the performance of each reportable segment Abbott has regulatory approvals in the U.S., Europe, China, and
over the last three years, sales in the Medical Devices segment, other markets for the “Alinity c” and “Alinity i” instruments and
excluding the impact of foreign exchange, increased 15.1 percent has continued to build out its test menu for clinical chemistry
in 2023 and 8.1 percent in 2022. The sales increases in 2023 and and immunoassay diagnostics. Abbott has obtained regulatory
2022 were driven by growth in Diabetes Care, Electrophysiology, approval for the “Alinity h” system for hematology in the U.S.,
Heart Failure, and Structural Heart. The 2023 increase was also Europe, Japan and other regions. Abbott has also obtained
driven by growth in Neuromodulation sales. regulatory approvals in the U.S., Europe and other markets for
In 2023, operating earnings for the Medical Devices segment the “Alinity s” (blood screening) and “Alinity m” (molecular)
increased 19.6 percent. The operating margin profile for the instruments and several testing assays. In the fourth quarter of
Medical Devices segment decreased from 31.3 percent in 2021 2023, Abbott received FDA approval of its new laboratory automa-
to 30.0 percent in 2022 and then increased to 31.4 percent in tion system, GLP systems Track™, to help laboratories optimize
2023. The decrease in 2022 from 2021 reflects various factors, the performance and safety of diagnostics testing.
including the impacts of inflationary pressures and supply chain In Abbott’s Nutritional Products segment, total pediatric nutrition
challenges related to various manufacturing inputs and processes. sales, excluding the impact of foreign exchange, increased
The increase in 2023 from 2022 reflects the impact of higher 14.8 percent in 2023, which includes market share recovery in
sales volumes across the Medical Devices businesses. the U.S. infant formula business following the voluntary recall of
In 2023, key product approvals in the Medical Devices certain products in the prior year. In 2022, pediatric nutrition
segment included: sales decreased 16.6 percent as a result of the voluntary recall and
manufacturing stoppage discussed above, as well as challenging
• FDA clearance for Navitor, Abbott’s second-generation market dynamics in China. In December 2022, Abbott initiated
transcatheter aortic valve implantation system to treat people steps to exit its pediatric nutrition business in China. Excluding
with severe aortic stenosis who are at high or extreme risk the impact of foreign exchange, total adult nutrition sales
for open-heart surgery, increased 8.8 percent in 2023 and 4.8 percent in 2022, led by the
• FDA clearance of Abbott’s Freestyle Libre continuous glucose continued growth of Abbott’s Ensure® and Glucerna® products
monitoring system for integration with automated insulin across several countries.
delivery systems, In 2023, operating earnings for the Nutritional Products segment
• FDA approval of Abbott’s Epic® Max stented tissue valve to increased 88.9 percent compared to 2022. Operating margins for
treat people with aortic regurgitation or stenosis, this segment decreased from 21.3 percent in 2021 to 9.5 percent in
2022 and then increased to 16.4 percent in 2023. The decrease in
• FDA approval of Abbott’s TactiFlex® Ablation Catheter, Sensor 2022 was driven by the impact of the voluntary infant product
Enabled™, the world’s first ablation catheter with a flexible recall and manufacturing stoppage as well as higher manufactur-
electrode tip and contact force sensing technology to treat ing and distribution costs, including commodity prices, partially
patients with atrial fibrillation, offset by the impact of gross margin improvement initiatives. The
• FDA approval of Abbott’s AVEIR™ dual-chamber leadless increase in 2023 reflects the favorable effects of higher sales and a
pacemaker system, the world’s first dual chamber leadless continued focus on gross margin improvement initiatives, partially
pacing system that treats people with abnormal or slow heart offset by higher commodity and other costs.
rhythms, and The Established Pharmaceutical Products segment focuses on
• CE Mark for Abbott’s AVEIR single-chamber leadless the sale of its products in emerging markets. Excluding the impact
pacemaker. of foreign exchange, Established Pharmaceutical sales increased
In Abbott’s Diagnostics segment, sales decreased 38.2 percent in 10.9 percent in 2023 and 10.6 percent in 2022. The sales increases
2023 and increased 10.4 percent in 2022, excluding the impact of in 2023 and 2022 reflect higher sales in several geographies
foreign exchange. As was discussed above, the 2023 sales decrease including India, Vietnam, and Brazil. In 2023, operating earnings
was driven by lower demand for Abbott’s COVID-19 tests, partially for the Established Pharmaceutical Products segment increased
offset by higher routine diagnostics testing in the core laboratory 15.0 percent. Operating margins increased from 18.8 percent in
business. The 2022 sales growth was driven by demand for 2021 to 23.8 percent in 2023 primarily due to the impact of gross
Abbott’s portfolio of rapid diagnostics tests for COVID-19 and margin improvement initiatives and higher sales, partially offset
higher routine diagnostics testing in the core laboratory business, by inflation on various product inputs.
partially offset by lower demand for Abbott’s laboratory-based With respect to Abbott’s financial position, at December 31, 2023
tests for COVID-19 in the molecular diagnostics business. and 2022, Abbott’s cash and cash equivalents and short-term
In 2023, operating earnings for the Diagnostics segment decreased investments total approximately $7.3 billion and $10.2 billion,
63.4 percent. The operating margin profile decreased from respectively. Abbott’s long-term debt totals $14.7 billion and
40.2 percent in 2021 to 24.4 percent in 2023 primarily due to lower $16.8 billion at December 31, 2023 and 2022, respectively.
demand for Abbott’s COVID-19 tests.
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FINANCIAL REVIEW
Abbott declared dividends of $2.08 per share in 2023 and $1.92 per as a reduction of gross sales when Abbott records its sale of the
share in 2022, an increase of 8.3 percent. Dividends paid totaled product. Settlement of the rebate generally occurs from one to six
$3.556 billion compared to $3.309 billion in 2022. The year-over- months after sale. Abbott regularly analyzes the historical rebate
year change in the amount of dividends paid reflects the increase in trends and makes adjustments to reserves for changes in trends and
the dividend rate. In December 2023, Abbott increased the compa- terms of rebate programs. Rebates and chargebacks charged against
ny’s quarterly dividend by 7.8 percent to $0.55 per share from gross sales in 2023, 2022, and 2021 amounted to approximately
$0.51 per share, effective with the dividend paid in February 2024. $3.9 billion per year, or 17.4 percent, 17.6 percent, and 17.5 percent
In December 2022, Abbott increased the company’s quarterly of gross sales, respectively, based on gross sales of approximately
dividend by 8.5 percent to $0.51 per share from $0.47 per share, $22.7 billion, $22.4 billion, and $22.3 billion, respectively, subject
effective with the dividend paid in February 2023. to rebate. A one-percentage point increase in the percentage of
On September 22, 2023, Abbott completed the acquisition of rebates to related gross sales would decrease net sales by approxi-
Bigfoot Biomedical, Inc. (Bigfoot), which will further Abbott’s mately $227 million in 2023. Abbott considers a one-percentage
efforts to develop connected solutions for making diabetes man- point increase to be a reasonably likely increase in the percentage
agement more personal and precise. On April 27, 2023, Abbott of rebates to related gross sales. Other allowances charged against
completed the acquisition of Cardiovascular Systems, Inc. (CSI). gross sales were approximately $263 million, $280 million, and
CSI’s atherectomy system, which is used in treating peripheral $268 million for cash discounts in 2023, 2022, and 2021, respec-
and coronary artery disease, adds complementary technologies tively, and $169 million, $379 million, and $211 million for returns
to Abbott’s portfolio of vascular device offerings. in 2023, 2022, and 2021, respectively. Cash discounts are known
within 15 to 30 days of sale, and therefore can be reliably estimated.
In 2024, Abbott will focus on continuing to invest in product Returns can be reliably estimated because Abbott’s historical
development areas that provide the opportunity for strong sus- returns are low, and because sales returns terms and other sales
tainable growth over the next several years. In its diagnostics terms have remained relatively unchanged for several periods.
business, Abbott’s focus will include driving sales growth from
its Alinity suite of diagnostics instruments and its portfolio of Management analyzes the adequacy of ending rebate accrual
rapid diagnostic testing systems. In the medical devices business, balances each quarter. In the domestic nutritional business,
Abbott will focus on growing recently launched new products and management uses both internal and external data available to
expanding its market position across the various businesses. In estimate the accruals. In the WIC business, estimates are required
its nutritional business, Abbott will continue to focus on driving for the amount of WIC sales within each state where Abbott holds
growth globally and further enhancing its portfolio with the the WIC contract. The state where the sale is made, which is the
introduction of science-based products and line extensions. In determining factor for the applicable rebated price, is reliably
the established pharmaceuticals business, Abbott will continue determinable. Rebated prices are based on contractually obligated
to focus on growing its business with the depth and breadth of agreements generally lasting a period of two to four years. Except
its portfolio in emerging markets. for a change in contract price or a transition period before or after
a change in the supplier for the WIC business in a state, accruals
CRITICAL ACCOUNTING POLICIES are based on historical redemption rates and data from the U.S.
Department of Agriculture (USDA) and the states submitting
Sales Rebates — In 2023, 49 percent of Abbott’s consolidated gross
rebate claims. The USDA, which administers the WIC program,
revenues were subject to various forms of rebates and allowances
has been making its data available for many years. Management
that Abbott recorded as reductions of revenues at the time of sale.
also estimates the states’ processing lag time based on sales and
Most of these rebates and allowances in 2023 are in the Nutritional
claims data. Management has access to several large customers’
Products and Diabetes Care businesses. Abbott provides rebates to
inventory management data, which allows management to make
state agencies that administer the Special Supplemental Nutrition
reliable estimates of inventory in the retail distribution channel.
Program for Women, Infants, and Children (WIC), wholesalers,
At December 31, 2023, Abbott had WIC business in 40 states.
group purchasing organizations, and other government agencies
and private entities. Rebate amounts are usually based upon the Historically, adjustments to prior years’ rebate accruals have
volume of purchases using contractual or statutory prices for a not been material to net earnings. Abbott employs various tech-
product. Factors used in the rebate calculations include the identi- niques to verify the accuracy of claims submitted to it, and where
fication of which products have been sold subject to a rebate, possible, works with the organizations submitting claims to gain
which customer or government agency price terms apply, and the insight into changes that might affect the rebate amounts. For
estimated lag time between sale and payment of a rebate. Using government agency programs, the calculation of a rebate involves
historical trends, adjusted for current changes, Abbott estimates interpretations of relevant regulations, which are subject to
the amount of the rebate that will be paid, and records the liability challenge or change in interpretation.
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FINANCIAL REVIEW
Income Taxes — Abbott operates in numerous countries where Valuation of Intangible Assets — Abbott has acquired and contin-
its income tax returns are subject to audits and adjustments. ues to acquire significant intangible assets that Abbott records
Because Abbott operates globally, the nature of the audit items is at fair value at the acquisition date. Transactions involving the
often very complex, and the objectives of the government auditors purchase or sale of intangible assets occur with some frequency
can result in a tax on the same income in more than one country. between companies in the health care field and valuations are
Abbott employs internal and external tax professionals to mini- usually based on a discounted cash flow analysis. The discounted
mize audit adjustment amounts where possible. In accordance cash flow model requires assumptions about the timing and
with the accounting rules relating to the measurement of tax amount of future net cash flows, risk, cost of capital, terminal
contingencies, in order to recognize an uncertain tax benefit, the values and market participants. Each of these factors can signifi-
taxpayer must be more likely than not of sustaining the position, cantly affect the value of the intangible asset. Abbott engages
and the measurement of the benefit is calculated as the largest independent valuation experts who review Abbott’s critical
amount that is more than 50 percent likely to be realized upon assumptions and calculations for acquisitions of significant
resolution of the benefit. Application of these rules requires a intangibles. Abbott reviews definite-lived intangible assets for
significant amount of judgment. In the U.S., Abbott’s federal income impairment each quarter. An undiscounted net cash flows
tax returns through 2016 were settled as of December 31, 2023. approach is used to test for impairment. If the undiscounted cash
Undistributed foreign earnings remain indefinitely reinvested in flows of an intangible asset are less than the carrying value of an
foreign operations. Determining the amount of unrecognized intangible asset, the intangible asset is written down to its fair
deferred tax liability related to any remaining undistributed value, which is usually the discounted cash flow amount. Where
foreign earnings not subject to the transition tax and additional cash flows cannot be identified for an individual asset, the review
outside basis difference in its foreign entities is not practicable. is applied at the lowest group level for which cash flows are identi-
Pension and Post-Employment Benefits — Abbott offers pension fiable. Goodwill and indefinite-lived intangible assets, which relate
benefits and post-employment health care to many of its employ- to in-process research and development acquired in a business
ees. Abbott engages outside actuaries to assist in the determination combination, are reviewed for impairment annually or when an
of the obligations and costs under these programs. Abbott must event that could result in an impairment occurs. At December 31,
develop long-term assumptions, the most significant of which are 2023, goodwill amounted to $23.7 billion and net intangibles
the health care cost trend rates, discount rates and the expected amounted to $8.8 billion. Amortization expense for intangible
return on plan assets. The discount rates used to measure liabili- assets amounted to $2.0 billion per year in 2023, 2022 and 2021.
ties were determined based on high-quality fixed income There was no reduction of goodwill relating to impairments in
securities that match the duration of the expected retiree benefits. 2023, 2022, and 2021.
The health care cost trend rates represent Abbott’s expected Litigation — Abbott accounts for litigation losses in accordance
annual rates of change in the cost of health care benefits and are with Financial Accounting Standards Board (FASB) Accounting
a forward projection of health care costs as of the measurement Standards Codification (ASC) No. 450, “Contingencies.” Under
date. A difference between the assumed rates and the actual rates, ASC No. 450, loss contingency provisions are recorded for proba-
which will not be known for years, can be significant in relation to ble losses at management’s best estimate of a loss, or when a best
the obligations and the annual cost recorded for these programs. estimate cannot be made, a minimum loss contingency amount is
The net actuarial gains for these plans in 2023 reflect the impact recorded. These estimates are often initially developed substan-
of actual asset returns during the year in excess of expected tially earlier than the ultimate loss is known, and the estimates are
returns, partially offset by the impact of lower discount rates on refined each accounting period as additional information becomes
the measurement of plan liabilities. At December 31, 2023, pretax known. Accordingly, Abbott is often initially unable to develop a
net actuarial losses and prior service costs and (credits) best estimate of loss, and therefore the minimum amount, which
recognized in Accumulated other comprehensive income (loss) could be zero, is recorded. As information becomes known, either
were net losses of $1.8 billion for Abbott’s defined benefit plans the minimum loss amount is increased, resulting in additional
and net losses of $40 million for Abbott’s medical and dental loss provisions, or a best estimate can be made, also resulting in
plans. Actuarial losses and gains are amortized over the remaining additional loss provisions. Occasionally, a best estimate amount is
service attribution periods of the employees under the corridor changed to a lower amount when events result in an expectation
method, in accordance with the rules for accounting for post- of a more favorable outcome than previously expected. Abbott
employment benefits. Differences between the expected long-term estimates the range of possible loss to be from approximately
return on plan assets and the actual annual return are amortized $30 million to $45 million for its legal proceedings and environ-
over a five-year period. mental exposures. Accruals of approximately $40 million have
been recorded at December 31, 2023 for these proceedings and
exposures. These accruals represent management’s best estimate
of probable loss, as defined by FASB ASC No. 450, “Contingencies.”
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FINANCIAL REVIEW
RESULTS OF OPERATIONS Excluding the impact of COVID-19 testing-related sales, Abbott’s

SALES
total net sales decreased 0.3 percent in 2022. Excluding the
impacts of COVID-19 testing-related sales and foreign exchange,
The following table details the components of sales growth by Abbott’s 2022 total net sales increased 5.1 percent. Abbott’s net
reportable segment for the last two years: sales in 2022 were unfavorably impacted by changes in foreign
exchange rates as the relatively stronger U.S. dollar decreased total
Total % Components of % Change
international sales by 8.2 percent and total sales by 5.1 percent.
Change Price Volume Exchange
The price declines related to the Diagnostic Products segment in
Total Net Sales 2023 and 2022 primarily reflect lower pricing for COVID-19 tests.
2023 vs. 2022 (8.1) 2.6 (8.7) (2.0)
The table below provides detail by sales category for the years
2022 vs. 2021 1.3 (0.3) 6.7 (5.1)
ended December 31. Percent changes are versus the prior year and
Total U.S. are based on unrounded numbers.
2023 vs. 2022 (14.8) 1.1 (15.9) —
2022 vs. 2021 9.0 (0.6) 9.6 — Total
Change
Total International Total Impact of Excl.
(dollars in millions) 2023 2022 Change Exchange Exchange
2023 vs. 2022 (3.3) 3.7 (3.5) (3.5)
2022 vs. 2021 (3.5) — 4.7 (8.2) Total Established
Pharmaceuticals —
Established Pharmaceutical Products Segment Key Emerging
2023 vs. 2022 3.1 6.0 4.9 (7.8) Markets $3,807 $3,766 1.1% (9.2)«% 10.3%
2022 vs. 2021 4.1 3.7 6.9 (6.5) Other 1,259 1,146 9.8÷« (3.0)÷÷ 12.8÷«
Nutritional Products Segment Nutritionals —
2023 vs. 2022 9.3 11.4 0.2 (2.3) International
2022 vs. 2021 (10.1) 7.4 (13.6) (3.9) Pediatric
Nutritionals 1,957 1,919 2.0÷« (3.2)÷÷ 5.2÷«
Diagnostic Products Segment U.S. Pediatric
2023 vs. 2022 (39.4) (0.9) (37.3) (1.2) Nutritionals 1,977 1,562 26.6÷« —÷÷ 26.6÷«
2022 vs. 2021 6.0 (5.5) 15.9 (4.4) International Adult
Medical Devices Segment Nutritionals 2,784 2,621 6.2÷« (4.2)÷÷ 10.4÷«
U.S. Adult
2023 vs. 2022 14.1 1.0 14.1 (1.0)
Nutritionals 1,436 1,357 5.8÷« —÷÷ 5.8÷«
2022 vs. 2021 2.2 (0.2) 8.3 (5.9)
Diagnostics —
The decrease in total net sales in 2023 reflects the decline in Core Laboratory 5,159 4,888 5.5÷« (2.9)÷÷ 8.4÷«
demand for Abbott’s rapid diagnostic tests to detect COVID-19, Molecular 574 995 (42.3)÷« (0.7)÷÷ (41.6)÷«
partially offset by higher sales in the Medical Devices, Established Point of Care 565 525 7.5÷« (0.2)÷÷ 7.7÷«
Pharmaceutical Products and Nutritional Products segments. Rapid Diagnostics 3,690 10,061 (63.3)÷« (0.4)÷÷ (62.9)÷«
Abbott’s COVID-19 testing-related sales totaled approximately
Medical Devices —
$1.6 billion in 2023, $8.4 billion in 2022 and $7.7 billion in 2021.
Excluding the impact of COVID-19 testing-related sales, Abbott’s Rhythm
Management 2,255 2,119 6.5÷« (1.0)÷÷ 7.5÷«
total net sales increased 9.2 percent in 2023. Excluding the impacts
Electrophysiology 2,195 1,927 13.9÷« (2.0)÷÷ 15.9÷«
of COVID-19 testing-related sales and foreign exchange, Abbott’s
total net sales increased 11.7 percent. Abbott’s net sales in 2023 Heart Failure 1,161 1,035 12.1÷« 0.1÷÷ 12.0÷«
were unfavorably impacted by changes in foreign exchange rates Vascular 2,681 2,483 8.0÷« (1.3)÷÷ 9.3÷«
as the relatively stronger U.S. dollar decreased total international Structural Heart 1,944 1,712 13.6÷« (0.7)÷÷ 14.3÷«
sales by 3.5 percent and total sales by 2.0 percent. Neuromodulation 890 770 15.5÷« (0.9)÷÷ 16.4÷«
Diabetes Care 5,761 4,756 21.1÷« (0.8)÷÷ 21.9÷«
The increase in total net sales in 2022 reflects growth in demand for
Abbott’s rapid diagnostic tests to detect COVID-19 as well as growth
in the Established Pharmaceutical Products and Medical Devices
segments, partially offset by lower Nutritional Products sales.
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FINANCIAL REVIEW
Total Excluding the impact of foreign exchange, total Nutritional

Change Products sales increased 11.6 percent in 2023 compared to a
Total Impact of Excl. 6.2 percent decrease in 2022. In U.S. Pediatric Nutritional sales,
(dollars in millions) 2022 2021 Change Exchange Exchange
the 26.6 percent increase in 2023 reflects progress in recovering
Total Established market share in 2023 following the voluntary recall of certain
Pharmaceuticals —
infant formula products in the first quarter of 2022, as well as
Key Emerging
the unfavorable 2022 impact of the recall, partially offset by a
Markets $÷3,766 $3,565 5.6% (6.5)«% 12.1%
decrease in 2023 Pedialyte® sales. In 2022, U.S. Pediatric
Other 1,146 1,153 (0.6)÷« (6.7)÷÷ 6.1÷«
Nutritional sales decreased 28.7 percent as a result of the volun-
Nutritionals — tary recall and production stoppage of certain infant powder
International formula products, partially offset by increased demand for
Pediatric Abbott’s Pedialyte products.
Nutritionals 1,919 2,106 (8.9)÷« (5.0)÷÷ (3.9)÷«
Excluding the effect of foreign exchange, the 5.2 percent increase
U.S. Pediatric
Nutritionals 1,562 2,192 (28.7)÷« —÷÷ (28.7)÷«
in International Pediatric Nutritional sales in 2023 reflects higher
sales in Latin America and Canada, partially offset by the impact
International Adult
Nutritionals 2,621 2,632 (0.4) ÷« (8.0)÷÷ 7.6÷« of exiting the pediatric nutrition business in China. In 2022, the
U.S. Adult 3.9 percent decrease in International Pediatric Nutritional sales,
Nutritionals 1,357 1,364 (0.5)÷« —÷÷ (0.5)÷« excluding the effect of foreign exchange, reflects the impact of
the challenging market dynamics in the infant category in China,
Diagnostics — partially offset by higher sales volumes in several countries in
Core Laboratory 4,888 5,128 (4.7)÷« (6.6)÷÷ 1.9÷« Southeast Asia and Latin America.
Molecular 995 1,427 (30.3)÷« (2.9)÷÷ (27.4)÷«
In 2023 and 2022, U.S. Adult Nutritional sales increased
Point of Care 525 536 (2.1)÷« (1.5)÷÷ (0.6)÷«
5.8 percent and decreased 0.5 percent, respectively. The growth
Rapid Diagnostics 10,061 8,435 19.3÷« (3.5)÷÷ 22.8÷«
in 2023 was led by higher Ensure® and Glucerna® product sales.
Medical Devices — In 2022, the growth of the Ensure brand was offset by lower sales
Rhythm of other products and the impact of temporarily utilizing liquid
Management 2,119 2,198 (3.6)÷« (5.1)÷÷ 1.5÷« manufacturing capacity to manufacture infant formula. In 2023
Electrophysiology 1,927 1,907 1.1÷« (6.2)÷÷ 7.3÷« and 2022, International Adult Nutritionals sales, excluding the
Heart Failure 1,035 1,007 2.8÷« (2.1)÷÷ 4.9÷« effect of foreign exchange, increased 10.4 percent and 7.6 percent,
Vascular 2,483 2,654 (6.4)÷« (5.4)÷÷ (1.0)÷« respectively, led by growth of Ensure® and Glucerna® products
Structural Heart 1,712 1,610 6.3÷« (6.7)÷÷ 13.0÷« in various countries.
Neuromodulation 770 781 (1.4)÷« (2.3)÷÷ 0.9÷« Excluding the effect of foreign exchange, Diagnostics segment
Diabetes Care 4,756 4,328 9.9÷« (7.5)÷÷ 17.4÷« sales decreased 38.2 percent in 2023 and increased 10.4 percent
Notes: in 2022, driven by changes in demand for COVID-19 tests. Rapid
The Acelis Connected Health business was internally transferred from Diagnostic Products to Diagnostics sales decreased 62.9 percent in 2023 and increased
Medical Devices on January 1, 2023. As a result, $115 million of sales in 2022 and $118 million 22.8 percent in 2022, excluding the effect of foreign exchange. The
of sales in 2021 were moved from Diagnostic Products to Medical Devices.
decrease in 2023 reflects lower demand for COVID-19 tests across
In order to compute results excluding the impact of exchange rates, current year U.S. dollar Abbott’s rapid testing platforms. Rapid Diagnostics COVID-19
sales are multiplied or divided, as appropriate, by the current year average foreign exchange
rates and then those amounts are multiplied or divided, as appropriate, by the prior year testing-related sales were $1.5 billion in 2023, $7.9 billion in 2022
average foreign exchange rates. and $6.6 billion in 2021.
In 2023, Rapid Diagnostics sales were virtually unchanged,
Total Established Pharmaceutical Products sales increased
excluding COVID-19 testing-related sales. Rapid Diagnostics sales
10.9 percent in 2023 and 10.6 percent in 2022, excluding the
increased 1.3 percent, excluding the impact of foreign exchange
unfavorable impact of foreign exchange. Excluding the effect of
and COVID-19 testing-related sales. Growth in various Rapid
foreign exchange, sales in Key Emerging Markets for Established
Diagnostics products was partially offset by the unfavorable effects
Pharmaceutical Products increased 10.3 percent in 2023 and
of an early 2022 flu season and a later start of the 2023 flu season.
12.1 percent in 2022, led by growth in several countries and across
In 2022, Rapid Diagnostics sales increased 17.0 percent, excluding
several therapeutic areas, including cardiometabolic, central
COVID-19 testing-related sales, and 20.5 percent, excluding the
nervous system/pain management and respiratory. Other
impact of foreign exchange and COVID-19 testing-related sales.
Emerging Markets, excluding the effect of foreign exchange,
These increases reflect higher sales of ID NOW tests for flu,
increased by 12.8 percent in 2023 and 6.1 percent in 2022.
strep, and respiratory syncytial virus (RSV), as well as growth
in various other Rapid Diagnostics products.
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FINANCIAL REVIEW
In Core Laboratory Diagnostics, sales increased 8.4 percent in In Neuromodulation, the 16.4 percent increase in 2023 sales,
2023 and 1.9 percent in 2022, excluding the effect of foreign excluding the effect of foreign exchange, was driven by the recent
exchange. The increases in 2023 and 2022 were due to higher launch of the Eterna® rechargeable spinal cord stimulation system
year-over-year volume of routine diagnostic testing performed for the treatment of chronic pain along with market growth
in hospitals and other laboratories, partially offset by lower test compared to the prior year.
sales for the detection of COVID-19 IgG and IgM antibodies. In Structural Heart, excluding the effect of foreign exchange, the
Core Laboratory Diagnostics COVID-19 testing-related sales on 14.3 percent and 13.0 percent sales increases in 2023 and 2022,
Abbott’s ARCHITECT and Alinity i platforms were $20 million in respectively, reflect continued growth of the MitraClip® product
2023, $62 million in 2022, and $204 million in 2021. Excluding as well as various other products, including Amplatzer® Amulet®
COVID-19 testing-related sales, Core Laboratory Diagnostics sales Left Atrial Appendage Occluder, Navitor®, and TriClip®.
increased 6.5 percent in 2023 and decreased 2.0 percent in 2022.
Excluding the impact of foreign exchange and COVID-19 testing- In Vascular, the 9.3 percent increase in 2023 sales, excluding the
related sales, Core Laboratory Diagnostics sales increased impact of foreign exchange, reflects the acquisition of CSI on April
9.4 percent in 2023 and 4.8 percent in 2022. 27, 2023, as well as double-digit growth in endovascular sales. In
2022, Vascular sales decreased 1.0 percent, excluding the impact of
In Molecular Diagnostics, sales decreased 41.6 percent in 2023 foreign exchange, as higher endovascular sales were offset by the
and 27.4 percent in 2022, excluding the effect of foreign exchange. negative effect of lower average selling prices globally on tradi-
In both years the decreases were driven by lower demand for tional drug eluting stents (DES) and other coronary products and
laboratory-based molecular tests for COVID-19. Molecular a lower recovery of percutaneous coronary intervention (PCI)
Diagnostics COVID-19 testing-related sales were $43 million in procedures which impacted the coronary business.
2023, $411 million in 2022 and $891 million in 2021. In 2023,
Molecular Diagnostics sales decreased 9.2 percent, excluding Abbott’s operations in Russia and Ukraine represent approxi-
COVID-19 testing-related sales, and decreased 8.1 percent, exclud- mately 2 percent of Abbott’s total revenues and net assets, and to
ing the impact of foreign exchange and COVID-19 testing-related date the financial impact of Russia’s invasion of Ukraine has not
sales. 2023 sales were impacted by lower demand for respiratory been material to Abbott’s operations or financial condition. Future
testing compared to significantly higher-than-usual demand in implications are difficult to predict, but at present Abbott does not
2022. In 2022, Molecular Diagnostics sales increased 9.0 percent, anticipate that the Russia-Ukraine conflict will have a material
excluding COVID-19 testing-related sales, and 13.8 percent, impact on its operations or financial condition. A more detailed
excluding the impact of foreign exchange and COVID-19 testing- discussion of the risks associated with the Russia-Ukraine conflict
related sales. is contained in Item 1A. Risk Factors.
Excluding the effect of foreign exchange, total Medical Devices The expiration of licenses and patent protection can affect the
sales grew 15.1 percent in 2023 and 8.0 percent in 2022, led by future revenues and operating income of Abbott. There are no
double-digit growth in 2023 in Diabetes Care, Structural Heart, significant patent or license expirations in the next three years
Heart Failure, Neuromodulation and Electrophysiology. Higher that are expected to materially affect Abbott.
Diabetes Care sales were driven by continued growth of FreeStyle
OPERATING EARNINGS
Libre®, Abbott’s continuous glucose monitoring system, in the
U.S. and internationally. FreeStyle Libre sales totaled $5.3 billion Gross profit margins were 50.3 percent of net sales in 2023,
in 2023, which reflected a 25.5 percent increase, excluding the 51.5 percent of net sales in 2022, and 52.2 percent of net sales
effect of foreign exchange, over 2022 when FreeStyle Libre sales in 2021. The decrease in 2023 reflects the unfavorable effects
totaled $4.3 billion. of lower sales of COVID-19 tests, foreign exchange, and higher
costs for various manufacturing inputs, partially offset by the
In 2022, while procedure volumes across Abbott’s cardiovascular
nonrecurrence of the negative impact in 2022 of the voluntary
and neuromodulation businesses were negatively impacted by
product recall in the Nutritional business and the impact in 2023
surges of COVID-19 in various geographies, as well as intermittent
of gross margin improvement initiatives. In 2022, the decrease
COVID-19 lockdown restrictions in China and healthcare staffing
reflected the impact of the voluntary infant product recall and
challenges throughout the year, overall volumes improved from
Sturgis manufacturing stoppage, as well as the prioritization of
2021 levels.
infant formula sales related to the WIC Program in the Nutritional
In 2023, the 15.9 percent increase in Electrophysiology sales, business. The decrease also reflected higher manufacturing and
excluding the effect of foreign exchange, primarily reflects higher supply chain costs across Abbott’s businesses, including inflation,
procedure volumes in the U.S., China, and various European commodities and distribution expenses.
countries. In 2022, Electrophysiology sales increased 7.3 percent,
Research and development (R&D) expenses were $2.7 billion in
excluding the effect of foreign exchange, due to an increase in
2023, $2.9 billion in 2022, and $2.7 billion in 2021. The decrease in
procedure volumes and the continued roll-out of Abbott’s EnSite
R&D expense in 2023 was primarily driven by lower restructuring
X® EP System with EnSite Omnipolar Technology (OT), a new
charges, lower impairment charges related to in-process R&D
cardiac mapping platform available in the U.S., Japan and
assets acquired in previous business combinations, and other cost
across Europe.
reductions. The increase in 2022 versus 2021 primarily reflected
higher spending on various projects to advance products in devel-
opment, as well as a charge related to the impairment of certain
in-process R&D intangible assets, partially offset by the favorable
impact of foreign exchange.
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FINANCIAL REVIEW
Selling, general and administrative (SG&A) expenses were INTEREST EXPENSE AND INTEREST (INCOME)
$10.9 billion in 2023, $11.2 billion in 2022 and $11.3 billion in Interest expense, net decreased from $375 million in 2022 to
2021. The 2023 decrease reflects the favorable impact of foreign $252 million in 2023. The decrease was due to the favorable impact
exchange and lower restructuring charges in 2023 as well as of higher interest rates on interest income, partially offset by the
the non-recurrence of 2022 expenses related to the voluntary negative impact of interest rate hedge contracts related to certain
product recall in the Nutritional segment. SG&A expenses were fixed-rate debt. Interest expense, net decreased $115 million in
virtually unchanged in 2022 compared to 2021 as higher selling 2022 due to the impact of higher interest rates and cash and short-
and marketing spending to drive growth was offset by the term investment balances on interest income and the repayment of
favorable impact of foreign exchange. debt in the first quarter of 2022, partially offset by the impact of
RESTRUCTURINGS
interest rate hedge contracts related to certain fixed-rate debt.
In 2023, Abbott management approved plans to restructure OTHER (INCOME) EXPENSE, NET
various operations in order to reduce costs in its medical devices, Other income, net increased from $277 million of income in 2021
diagnostic, and established pharmaceutical businesses. Abbott and $321 million of income in 2022 to $479 million of income in
recorded employee related severance and other charges of approx- 2023. Other income, net includes income of approximately
imately $144 million of which approximately $56 million was $498 million, $406 million, and $270 million in 2023, 2022, and
recorded in Cost of products sold, approximately $22 million 2021, respectively, related to the non-service cost components
was recorded in Research and development and approximately of the net periodic benefit costs associated with the pension and
$66 million was recorded in Selling, general and administrative post-retirement medical plans. Other income, net also includes
expenses. In addition, Abbott recognized fixed assets impairment equity investment impairments that totaled approximately
and inventory related charges of approximately $31 million $39 million in 2023 and $45 million in 2022; in 2023 income from
related to these restructuring plans. a $42 million reduction in the fair value of contingent consider-
In 2022, Abbott management approved plans to streamline ation related to previous business acquisitions; and a gain on the
operations in order to reduce costs and improve efficiencies in sale of an equity method investment in 2021.
its medical devices, nutritional, diagnostic, and established
TAXES ON EARNINGS
pharmaceutical businesses. Abbott recorded employee related
severance and other charges of approximately $234 million of Taxes on earnings include approximately $22 million, $43 million
which approximately $59 million was recorded in Cost of products and $145 million in excess tax benefits associated with share-based
sold, approximately $36 million was recorded in Research and compensation in 2023, 2022 and 2021, respectively. As a result of
development and approximately $139 million was recorded in the resolution of various tax positions related to prior years, taxes
Selling, general and administrative expenses. In addition, Abbott on earnings in 2023, 2022 and 2021 also include approximately
recognized inventory related charges of approximately $23 million $80 million and $20 million of net tax expense and $55 million of
and fixed assets impairment charges of approximately $4 million net tax benefits, respectively.
related to these restructuring plans. Exclusive of these discrete items, tax expense was favorably
In 2021, Abbott management approved a restructuring plan impacted by lower tax rates and tax exemptions on foreign income
related to its Diagnostic Products segment to align its manufac- primarily derived from operations in Puerto Rico, Switzerland,
turing network for COVID-19 diagnostic tests with changes in Ireland, the Netherlands, Costa Rica, Singapore, Malta and
the second quarter of 2021 in projected testing demand driven Malaysia. Abbott benefits from a combination of favorable
by several factors, including significant reductions in cases in the statutory tax rules, tax rulings, grants, and exemptions in these
U.S. and other major developed countries, the accelerated rollout tax jurisdictions.
of COVID-19 vaccines globally and the U.S. health authority’s The 2017 U.S. Tax Cuts and Jobs Act (TCJA) includes a one-time
updated guidance on testing for fully vaccinated individuals. transition tax that is based on Abbott’s total post-1986 earnings
Charges under this plan were recorded in Cost of products sold and profits (E&P) that were previously deferred from U.S. income
and totaled $441 million in 2021. taxes. The tax computation also requires the determination of
In 2021, Abbott management approved plans to streamline the amount of post-1986 E&P considered held in cash and other
operations in order to reduce costs and improve efficiencies in its specified assets. As of December 31, 2023, the remaining balance
diagnostic, established pharmaceutical, nutritional, and medical of Abbott’s transition tax obligation related to the TCJA is approx-
device businesses. Abbott recorded employee related severance imately $598 million, which will be paid over the next three
and other charges of approximately $68 million of which years as allowed by the TCJA. Undistributed foreign earnings
approximately $16 million was recorded in Cost of products remain indefinitely reinvested in foreign operations. Determining
sold, approximately $4 million was recorded in Research and the amount of unrecognized deferred tax liability related to any
development and approximately $48 million was recorded in remaining undistributed foreign earnings not subject to the transi-
Selling, general and administrative expenses. tion tax and additional outside basis difference in its foreign
entities is not practicable.
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FINANCIAL REVIEW
In the U.S., Abbott’s federal income tax returns through 2016 are Depending upon the product, the phases of development
settled. In September 2023, Abbott received a Statutory Notice of may include:
Deficiency (SNOD) from the U.S. Internal Revenue Service (IRS) • Drug product development.
for the 2019 Federal tax year in the amount of $417 million. The
primary adjustments proposed in the SNOD relate to the realloca- • Phase I bioequivalence studies to compare a future Established
tion of income between Abbott’s U.S. entities and its foreign Pharmaceutical’s brand with an already marketed compound
affiliates. Abbott believes that the income reallocation adjustments with the same active pharmaceutical ingredient (API).
proposed in the SNOD are without merit, in part because certain • Phase II studies to test the efficacy of benefits in a small group
adjustments contradict methods that were agreed to with the IRS of patients.
in prior audit periods. The SNOD also contains other proposed
adjustments that Abbott believes are erroneous and unsupported. • Phase III studies to broaden the testing to a wider population
Abbott filed a petition with the U.S. Tax Court contesting the that reflects the actual medical use.
SNOD in December of 2023. • Phase IV and other post-marketing studies to obtain new
Abbott’s 2017 and 2018 Federal tax years are also currently under clinical use data on existing products within approved indications.
examination by the IRS with respect to income reallocation issues The specific requirements (e.g., scope of clinical trials) for
similar to those included in the 2019 Federal tax year. Abbott obtaining regulatory approval vary across different countries and
intends to vigorously defend its filing positions through ongoing geographic regions. The process may range from one year for a
discussions with the IRS, the IRS independent appeals process bioequivalence study project to six or more years for complex
and/or through litigation as necessary. formulations, new indications, or geographic expansion in specific
Abbott reserves for uncertain tax positions related to unresolved countries, such as China.
matters with the IRS and other taxing authorities. Abbott contin- In the Diagnostics segment, the phases of the research and
ues to believe that its reserves for uncertain tax positions are development process include:
appropriate. • Discovery which focuses on identification of a product that
There are numerous other income tax jurisdictions for which will address a specific therapeutic area, platform, or unmet
tax returns are not yet settled, none of which Abbott expects to clinical need.
be individually significant. Reserves for interest and penalties • Concept/Feasibility during which the materials and
are not significant. manufacturing processes are evaluated, testing may include
The Organization for Economic Cooperation & Development product characterization and analysis is performed to
(OECD) has proposed a two-pillared plan for a revised interna- confirm clinical utility.
tional tax system. Pillar 1 proposes to reallocate taxing rights • Development during which extensive testing is performed
among the jurisdictions in which in-scope multinational corpora- to demonstrate that the product meets specified design
tions operate. Abbott is continuing to analyze the Pillar 1 proposal. requirements and that the design specifications conform
Pillar 2 proposes to assess a 15% minimum tax on the earnings of to user needs and intended uses.
in-scope multinational corporations on a country-by-country
basis. Numerous countries have enacted legislation to adopt the The regulatory requirements for diagnostic products vary across
Pillar 2 model rules with a subset of the rules becoming effective different countries and geographic regions. In the U.S., the FDA
January 1, 2024, and the remaining rules becoming effective classifies diagnostic products into classes (I, II, or III) and the
January 1, 2025, or in later periods. Abbott is also continuing to classification determines the regulatory process for approval.
analyze the Pillar 2 model rules. Implementation of the OECD While the Diagnostics segment has products in all three classes,
proposal may have a material impact on Abbott’s Consolidated the vast majority of its products are categorized as Class I or
Financial Statements in the future. Class II. Submission of a separate regulatory filing is not required
for Class I products. Class II products typically require pre-market
See Note 15 to the consolidated financial statements for a notification to the FDA through a regulatory filing known as a
full reconciliation of the effective tax rate to the U.S. federal 510(k) submission. Most Class III products are subject to the
statutory rate. FDA’s Premarket Approval (PMA) requirements. Other Class III
RESEARCH AND DEVELOPMENT PROGRAMS products, such as those used to screen blood, require the submis-
sion and approval of a Biological License Application (BLA).
Abbott currently has numerous pharmaceutical, medical devices,
diagnostic and nutritional products in development. In the European Union (EU), diagnostic products are also
categorized into different categories and the regulatory process,
RESEARCH AND DEVELOPMENT PROCESS which had been governed by the European In Vitro Diagnostic
In the Established Pharmaceuticals segment, the development Medical Device Directive, depends upon the category, with certain
process focuses on the geographic expansion and continuous product categories requiring review and approval by an indepen-
improvement of the segment’s existing products to provide bene- dent company, known as a Notified Body, before the manufacturer
fits to patients and customers. As Established Pharmaceuticals can affix a CE mark to the product to declare conformity to the
does not actively pursue primary research, development usually Directive. Other products only require a self-certification process.
begins with work on existing products or after the acquisition In 2017, the EU adopted the new In Vitro Diagnostic Regulation
of an advanced stage licensing opportunity. (IVDR) which replaced the existing directive in the EU for in vitro
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FINANCIAL REVIEW
diagnostic products and imposed additional premarket and post- In the U.S., the FDA requires that it be notified of proposed new
market regulatory requirements on manufacturers of such formulations and formulation or packaging changes related to
products. In December 2021, the IVDR was amended to extend infant formula products. Prior to the launch of an infant formula
the regulation’s previous two-year transition period by a range or product packaging change, the company is required to obtain
of one to three years, with the transition period extending to the FDA’s confirmation that it has no objections to the proposed
May 2027 for certain classes of diagnostic devices. However, the product or packaging. For other nutritional products, notification
amendment did not delay the date of application of the IVDR or pre-approval from the FDA is not required unless the product
itself which took effect on May 26, 2022. includes a new food additive. In some countries, regulatory
In the Medical Devices segment, the research and development approval may be required for certain nutritional products,
process begins with research on a specific technology that is including infant formula and medical nutritional products.
evaluated for feasibility and commercial viability. If the research AREAS OF FOCUS
program passes that hurdle, it moves forward into development.
The development process includes evaluation, selection and In 2024 and beyond, Abbott expects to focus on the
qualification of a product design, completion of applicable clinical following areas:
trials to test the product’s safety and efficacy, and validation of Established Pharmaceuticals — Abbott focuses on building
the manufacturing process to demonstrate its repeatability and country-specific portfolios made up of high-quality medicines
ability to consistently meet pre-determined specifications. that meet the needs of people in emerging markets. Over the next
Similar to the diagnostic products discussed above, in the U.S., several years, Abbott plans to expand its product portfolio in key
medical devices are classified as Class I, II, or III. Most of Abbott’s therapeutic areas and biosimilars with the aim of addressing the
medical device products are classified as Class II devices that health needs of more people in emerging markets and being
follow the 510(k) regulatory process or Class III devices that are among the first to launch new off-patent and differentiated medi-
subject to the PMA process. cines. In addition, Abbott continues to expand existing brands into
new markets, implement product enhancements that provide
In the EU, medical devices are also categorized into different value to patients and acquire strategic products and technology
classes and the regulatory process, which had been governed through licensing activities. Abbott is also actively working on
by the European Medical Device Directive and the Active the further development of several key brands such as Creon™,
Implantable Medical Device Directive, varies by class. In the Duphaston™, Femoston™ and Influvac™. Depending on the
second quarter of 2017, the EU adopted the new Medical Devices product, the activities focus on development of new data, markets,
Regulation (MDR) which replaced the existing directives in the formulations, delivery systems, or indications.
EU for medical devices and imposes additional premarket and
post-market regulatory requirements on manufacturers of such Medical Devices — Abbott’s research and development programs
products. The MDR applies to manufacturers as of May 26, 2021 focus on:
with extended transition periods lasting as long as December 31, • Cardiac Rhythm Management – Development of next-generation
2028 depending on the risk classification of the device in the rhythm management technologies, including advanced commu-
regulation. Each product must bear a CE mark to show compli- nication capabilities and leadless pacing therapies.
ance with the MDR.
• Heart Failure – Continued enhancements to Abbott’s mechani-
Some products require submission of a design dossier to the cal circulatory support and pulmonary artery pressure systems,
appropriate regulatory authority for review and approval prior including enhanced clinical performance and usability.
to CE marking of the device. For other products, the company is
• Electrophysiology – Development of next-generation
required to prepare a technical file which includes testing results
technologies in the areas of ablation, diagnostic, mapping,
and clinical evaluations but can self-certify its ability to apply the
and visualization and recording.
CE mark to the product. Outside the U.S. and the EU, the regula-
tory requirements vary across different countries and regions. • Vascular – Development of next-generation technologies for
use in coronary and peripheral vascular procedures.
After approval and commercial launch of some medical devices,
post-market trials may be conducted either due to a conditional • Structural Heart – Development of transcatheter and surgical
requirement of the regulatory market approval or with the devices for the repair and replacement of heart valves, and
objective of proving product superiority. occlusion therapies for congenital heart defects and stroke-risk
reduction.
In the Nutritional segment, the research and development
process generally focuses on identifying and developing ingredi- • Neuromodulation – Development of clinical evidence and next-
ents and products that address the nutritional needs of particular generation technologies leveraging digital health to support
populations (e.g., infants and adults) or patients (e.g., people with improved patient clinical outcomes, physician engagement, and
diabetes). Depending upon the country and/or region, if claims expanded indications in the treatment of chronic pain, move-
regarding a product’s efficacy will be made, clinical studies ment disorders and other indications.
typically must be conducted. • Diabetes Care – Develop enhancements and additional
indications for the FreeStyle Libre platform of continuous
glucose monitoring products to help patients improve their
ability to manage diabetes and for use beyond diabetes.
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FINANCIAL REVIEW
Nutritionals — Abbott is focusing its research and development GOODWILL

spend on platforms that span the pediatric and adult nutrition At December 31, 2023, goodwill recorded as a result of business
areas: gastrointestinal/immunity health, brain health, mobility combinations totaled $23.7 billion. Goodwill is reviewed for
and metabolism, and user experience platforms. Numerous new impairment annually in the third quarter or when an event that
products that build on advances in these platforms are currently could result in an impairment occurs, using a quantitative assess-
under development, including clinical outcome testing, and are ment to determine whether it is more likely than not that the fair
expected to be launched over the coming years. value of any reporting unit is less than its carrying amount. The
Core Laboratory Diagnostics — Abbott continues to commercialize income and market approaches are used to calculate the fair value
its next-generation blood and plasma screening, immunoassay, of each reporting unit. The results of the last impairment test
clinical chemistry and hematology systems, along with assays, indicated that the fair value of each reporting unit was substan-
including a focus on unmet medical needs, in various areas includ- tially in excess of its carrying value.
ing infectious disease, cardiac care, metabolics, oncology, and
FINANCIAL CONDITION
neurologic assays as well as informatics solutions to help optimize
diagnostics laboratory performance and automation solutions to CASH FLOW
increase efficiency in laboratories.
Net cash from operating activities amounted to $7.3 billion,
Molecular Diagnostics — Several new molecular in vitro diagnostic $9.6 billion, and $10.5 billion in 2023, 2022, and 2021, respectively.
(IVD) tests are in various stages of development and launch. The decrease in Net cash from operating activities in 2023 as
Rapid Diagnostics — Abbott’s research and development programs compared to 2022 is primarily due to the decline in operating
focus on the development of diagnostic products for infectious earnings and increased payments related to accounts payable
disease, cardiometabolic disease and toxicology. and accrued liabilities, partially offset by lower expenditures for
inventory and lower cash payments for income taxes due to lower
In addition, the Diagnostics segment is pursuing the FDA’s earnings. The decrease in Net cash from operating activities in
customary regulatory process for various COVID-19 tests for 2022 as compared to 2021 was primarily due to the unfavorable
which EUAs were obtained. cash flow impact of an increased investment in working capital,
Given the diversity of Abbott’s business, its intention to remain a partially offset by reduced expenditures related to restructuring
broad-based health care company and the numerous sources for actions and lower cash payments for income taxes.
potential future growth, no individual project is expected to be A substantial portion of Abbott’s cash and cash equivalents at
material to cash flows or results of operations over the next five December 31, 2023, is held by Abbott affiliates outside of the U.S.
years. Factors considered included research and development If these funds were needed for operations in the U.S., Abbott does
expenses projected to be incurred for the project over the next year not expect to incur significant additional income taxes in the
relative to Abbott’s total research and development expenses, as future to repatriate these funds.
well as qualitative factors, such as marketplace perceptions
and impact of a new product on Abbott’s overall market position. Abbott funded $349 million in 2023, $413 million in 2022, and
There were no delays in Abbott’s 2023 research and development $418 million in 2021 to defined benefit pension plans. Abbott
activities that are expected to have a material impact on operations. expects pension funding of approximately $350 million in 2024
for its pension plans. Abbott expects annual cash flow from oper-
While the aggregate cost to complete the numerous projects ating activities to continue to exceed Abbott’s capital expenditures
currently in development is expected to be material, the total and cash dividends.
cost to complete will depend upon Abbott’s ability to successfully
finish each project, the rate at which each project advances, and DEBT AND CAPITAL
the ultimate timing for completion. Given the potential for signifi- At December 31, 2023, Abbott’s long-term debt rating was AA- by
cant delays and the risk of failure inherent in the development S&P Global Ratings and Aa3 by Moody’s Investors Service. Abbott
of medical device, diagnostic and pharmaceutical products and expects to maintain an investment grade rating.
technologies, it is not possible to accurately estimate the total
cost to complete all projects currently in development. Abbott Abbott has readily available financial resources, including unused
plans to manage its portfolio of projects to achieve research and lines of credit that support commercial paper borrowing arrange-
development spending that will be competitive in each of the ments and provide Abbott with the ability to borrow up to
businesses in which it participates, and such spending is targeted $5 billion on an unsecured basis. The lines of credit as of
at approximately 7 percent of total Abbott sales in 2024. Abbott December 31, 2023 were a part of a Five Year Credit Agreement
does not regularly accumulate or make management decisions that Abbott entered into on November 12, 2020. On January 29,
based on the total expenses incurred for a particular development 2024, Abbott terminated the 2020 Agreement and entered into a
phase in a given period. new Five Year Credit Agreement (Revolving Credit Agreement).
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FINANCIAL REVIEW
There were no outstanding borrowings under the 2020 Agreement WORKING CAPITAL
at the time of its termination. Any borrowings under the Revolving Working capital was $8.8 billion at December 31, 2023 and
Credit Agreement will mature and be payable on January 29, 2029 $9.7 billion at December 31, 2022. The decrease was due largely to
and will bear interest, at Abbott’s option, based on either a base a decrease in cash and cash equivalents, partially offset by the
rate or Secured Overnight Financing Rate (SOFR) rate, plus an repayment of debt due in 2023. The decrease in cash and cash
applicable margin based on Abbott’s credit ratings. equivalents from $9.9 billion at December 31, 2022 to $6.9 billion
As of December 31, 2023, Abbott’s total debt outstanding was at December 31, 2023 primarily reflects the payment of dividends,
$14.7 billion, of which approximately $1.1 billion will mature in the repayment of debt, capital expenditures, share repurchases,
2024. Abbott expects to repay the $655 million of notes maturing and the cost of business acquisitions, partially offset by the cash
in 2024 through the use of cash on hand and to refinance the generated from operations.
$419 million term loan in 2024. Abbott monitors the credit worthiness of customers and estab-
On November 30, 2023, Abbott repaid the $1.05 billion outstanding lishes an allowance that reflects the current estimate of credit
principal amount of its 3.40% Notes upon maturity. On September losses expected to be incurred over the life of the financial asset.
27, 2023, Abbott repaid the €1.14 billion outstanding principal Abbott considers various factors in establishing, monitoring, and
amount of its 0.875% Notes upon maturity. The euro debt repay- adjusting its allowance for doubtful accounts, including the aging
ment equated to approximately $1.2 billion. In September 2023, of the accounts and aging trends, the historical level of charge-
Abbott repaid approximately $197 million of debt assumed as part offs, and specific exposures related to particular customers. Abbott
of a recent business acquisition. On March 15, 2022, Abbott repaid also monitors other risk factors and forward-looking information,
the $750 million outstanding principal amount of its 2.55% Notes such as country risk, when determining credit limits for customers
upon maturity. and establishing adequate allowances.
In 2021, Abbott repaid approximately $195 million on a short-term CAPITAL EXPENDITURES
facility upon maturity. After the repayment, Abbott has no short-
term debt. Capital expenditures of $2.2 billion in 2023, $1.8 billion in 2022,
and $1.9 billion in 2021 were principally for upgrading and
In October 2019, the board of directors authorized the repurchase expanding manufacturing and research and development facilities
of up to $3 billion of Abbott’s common shares from time to time. and equipment in various segments, investments in information
This authorization was in addition to the unused portion of a technology, and laboratory instruments placed with customers.
previous share repurchase program that was authorized in 2014.
In 2021, Abbott repurchased 16.6 million of its common shares for CONTRACTUAL OBLIGATIONS
$2.016 billion, which fully utilized the authorization remaining Abbott believes that its available cash and cash equivalents along
under the 2014 share repurchase program and a portion of the with its ability to generate operating cash flow and continued
2019 authorization. In December 2021, the board of directors access to debt markets are sufficient to fund existing and planned
authorized the repurchase of up to $5 billion of Abbott’s common cash requirements. Abbott’s material cash requirements include
shares from time to time. This authorization was in addition to the the following contractual obligations:
$1.081 billion portion of the share repurchase program authorized
in 2019 that was unused as of December 31, 2021. In 2022, Abbott Debt — Principal payments required on long-term debt outstand-
repurchased 32.3 million of its common shares for $3.65 billion ing at December 31, 2023 are $1.1 billion in 2024, $1.5 billion in
which fully utilized the authorization remaining under the 2019 2025, $3.0 billion in 2026, $656 million in 2027, $651 million in
share repurchase program and a portion of the 2021 authorization. 2028 and $8.0 billion in 2029 and thereafter. Interest payments
In 2023, Abbott repurchased approximately 9.8 million of its required on long-term debt outstanding at December 31, 2023 are
common shares for $1.025 billion. As of December 31, 2023, projected to be $526 million in 2024, $508 million in 2025,
$1.41 billion remains available for repurchase under the 2021 $474 million in 2026, $391 million in 2027, $385 million in 2028
repurchase program. and $5.0 billion in 2029 and thereafter.
Abbott declared dividends of $2.08 per share in 2023 compared to Operating leases — As of December 31, 2023, estimated contractual
$1.92 per share in 2022, an increase of 8.3 percent. Dividends paid obligations for operating lease payments were $1.362 billion, with
were $3.556 billion in 2023 compared to $3.309 billion in 2022. $278 million due within 12 months.
The year-over-year change in dividends paid reflects the impact of In addition, Abbott enters into purchase commitments in the
the increase in the dividend rate. normal course of business to meet operational and capital expen-
diture requirements. The majority of outstanding purchase
commitments generally do not extend past one year.
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FINANCIAL REVIEW
CONTINGENT OBLIGATIONS RECENTLY ISSUED ACCOUNTING STANDARDS

Abbott periodically acquires a business or product rights in which RECENTLY ADOPTED ACCOUNTING STANDARDS
Abbott agrees to pay contingent consideration based on attaining
In September 2022, the FASB issued Accounting Standards
certain thresholds or based on the occurrence of certain events.
Update 2022-04, Disclosure of Supplier Finance Program
BUSINESS ACQUISITIONS Obligations, which requires an entity to report information about
its supplier finance program. Abbott adopted the standard on
On September 22, 2023, Abbott completed the acquisition of January 1, 2023. The new standard did not have an impact on
Bigfoot, which will further Abbott’s efforts to develop connected Abbott’s consolidated financial statements.
solutions for making diabetes management more personal and
precise. The purchase price, the preliminary allocation of acquired In December 2019, the FASB issued ASU 2019-12, Income Taxes
assets and liabilities, and the revenue and net income contributed (Topic 740): Simplifying the Accounting for Income Taxes, which
by Bigfoot since the date of acquisition are not material to Abbott’s among other things, eliminates certain exceptions in the current
consolidated financial statements. rules regarding the approach for intraperiod tax allocations and
the methodology for calculating income taxes in an interim period,
On April 27, 2023, Abbott completed the acquisition of CSI for and clarifies the accounting for transactions that result in a
$20 per common share, which equated to a purchase price of step-up in the tax basis of goodwill. Abbott adopted the standard
$851 million. The transaction was funded with cash on hand on January 1, 2021. The new standard did not have an impact on
and accounted for as a business combination. CSI’s atherectomy its consolidated financial statements.
system, which is used in treating peripheral and coronary artery
disease, adds complementary technologies to Abbott’s portfolio RECENT ACCOUNTING STANDARDS NOT YET ADOPTED
of vascular device offerings.
In November 2023, the FASB issued ASU 2023-07, Segment
The preliminary allocation of the purchase price of the CSI acqui- Reporting (Topic 280): Improvements to Reportable Segment
sition resulted in the recording of two non-deductible developed Disclosures, which expands the breadth and frequency of required
technology intangible assets of $305 million; non-deductible segment disclosures. The guidance is required to be applied
in-process research and development of $15 million, which will be retrospectively to all periods presented in the financial statements.
accounted for as an indefinite-lived intangible asset until regula- The standard becomes effective for Abbott for full year 2024
tory approval or discontinuation; non-deductible goodwill of reporting and for interim periods beginning in the first quarter
$371 million; net deferred tax assets of approximately $46 million of 2025. Abbott is currently evaluating the impact of this new
and other net assets of approximately $114 million. The goodwill standard on its consolidated financial statements.
is identifiable to the Medical Devices reportable segment and is
In December 2023, the FASB issued ASU 2023-09, Income Taxes
attributable to expected synergies from combining operations, as
(Topic 740): Improvements to Income Tax Disclosures, which
well as intangible assets that do not qualify for separate recogni-
requires an entity to disclose annually additional information
tion. Allocation of the purchase price of the acquisition will be
related to the company’s income tax rate reconciliation and
finalized when the valuation of assets and liabilities is completed.
income taxes paid during the period. The guidance should be
Revenues and earnings of CSI included in Abbott’s consolidated
applied prospectively with the option to apply the standard
financial statements since the acquisition date are not material to
retrospectively. The standard becomes effective for Abbott for full
Abbott’s consolidated revenue and earnings. If the acquisition of
year 2025 reporting. Abbott is currently evaluating the impact of
CSI had taken place as of the beginning of 2022, consolidated net
this new standard on its consolidated financial statements.
sales and earnings would not have been significantly different
from reported amounts. PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995 —
In September 2021, Abbott acquired Walk Vascular, LLC (Walk A CAUTION CONCERNING FORWARD-LOOKING STATEMENTS
Vascular), a commercial-stage medical device company with a Under the safe harbor provisions of the Private Securities
minimally invasive thrombectomy system designed to remove Litigation Reform Act of 1995, Abbott cautions investors that any
peripheral blood clots. Walk Vascular’s peripheral thrombectomy forward-looking statements or projections made by Abbott,
system has been incorporated into Abbott’s existing endovascular including those made in this document, are subject to risks and
portfolio. The purchase price, the allocation of acquired assets uncertainties that may cause actual results to differ materially
and liabilities, and the revenue and net income contributed by from those projected. Economic, competitive, governmental,
Walk Vascular since the date of acquisition are not material to technological and other factors that may affect Abbott’s operations
Abbott’s consolidated financial statements. are discussed in Item 1A, Risk Factors.
LEGISL ATIVE ISSUES
Abbott’s primary markets are highly competitive and subject to
substantial government regulations throughout the world. Abbott
expects debate to continue over the availability, method of deliv-
ery, and payment for health care products and services. It is not
possible to predict the extent to which Abbott or the health care
industry in general might be adversely affected by these factors
in the future. A more complete discussion of these factors is
contained in Item 1, Business, and Item 1A, Risk Factors.
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FINANCIAL REVIEW
PERFORMANCE GRAPH
$250 This graph compares the change

in Abbott’s cumulative total shareholder
return on its common shares with the
$200 Standard & Poor’s 500 Index and the
Standard & Poor’s 500 Health Care Index.
$150
Abbott Laboratories
S&P 500 Index
$100 S&P 500 Health Care
$50
$0
2018 2019 2020 2021 2022 2023
Assuming $100 invested on December 31, 2018 with dividends reinvested.
79
S U M M A R Y O F S E L E C T E D F I N A N C I A L D ATA
(Dollars in millions except per share data)
Year Ended December 31 2023 2022 2021 2020 2019
Summary of Operations:
Net Sales $ 40,109 43,653 43,075 34,608 31,904
Cost of products sold $ 19,941 21,155 20,584 17,135 15,167
Research & development $ 2,741 2,888 2,742 2,420 2,440
Selling, general, and administrative $ 10,949 11,248 11,324 9,696 9,765
Operating earnings $ 6,478 8,362 8,425 5,357 4,532
Interest expense $ 637 558 533 546 670
Interest income $ (385) (183) (43) (46) (94)
Other (income) expense, net (a) $ (438) (319) (276) (111) (121)
Earnings before taxes $ 6,664 8,306 8,211 4,968 4,077
Taxes on earnings from continuing operations $ 941 1,373 1,140 497 390
Earnings from continuing operations $ 5,723 6,933 7,071 4,471 3,687
Net earnings $ 5,723 6,933 7,071 4,495 3,687
Basic earnings per common share from continuing operations $ 3.28 3.94 3.97 2.51 2.07
Basic earnings per common share $ 3.28 3.94 3.97 2.52 2.07
Diluted earnings per common share from continuing operations $ 3.26 3.91 3.94 2.49 2.06
Diluted earnings per common share $ 3.26 3.91 3.94 2.50 2.06
Financial Positions:
Working capital $ 8,829 9,735 11,134 8,534 4,804
Long-term investment securities $ 799 766 816 821 883
Net property & equipment $ 10,154 9,162 8,959 9,029 8,038
Total assets $ 73,214 74,438 75,196 72,548 67,887
Long-term debt, including current portion $ 14,679 16,773 18,050 18,534 17,938
Shareholders’ investment $ 38,827 36,905 36,024 33,003 31,301
Book value per share $ 22.39 21.24 20.42 18.63 17.76
Other Statistics:
Gross profit margin % 50.3 51.5 52.2 50.5 52.5
Research and development to net sales % 6.8 6.6 6.4 7.0 7.6
Net cash from operating activities $ 7,261 9,581 10,533 7,901 6,136
Capital expenditures $ 2,202 1,777 1,885 2,177 1,638
Cash dividends declared per common share $ 2.08 1.92 1.82 1.53 1.32
Common shares outstanding (in thousands) 1,734,076 1,737,795 1,764,082 1,771,230 1,762,503
Number of common shareholders 32,449 34,019 35,926 37,450 38,990
Market price per share – high $ 115.83 139.83 142.60 115.14 89.24
Market price per share – low $ 89.67 93.25 105.36 61.61 65.50
Market price per share – close $ 110.07 109.79 140.74 109.49 86.80
a) These amounts include debt extinguishment costs and net foreign exchange (gain) loss.
80
D I R E C T O R S A N D C O R P O R AT E O F F I C E R S
D I R EC TO R S
Robert J. Alpern, M.D. Sally E. Blount, Ph.D. Robert B. Ford Darren W. McDew Michael F. Roman
Ensign Professor of Medicine President and Chief Chairman of the Board and Retired General, United Chairman of the Board,
and Physiology and Professor Executive Officer, Catholic Chief Executive Officer, States Air Force, and President and
of Internal Medicine and Charities of the Archdiocese Abbott Laboratories Former Commander of U.S. Chief Executive Officer,
Cellular and Molecular of Chicago and Transportation Command 3M Company
Physiology, and Former Dean Michael L. Nemmers Paola Gonzalez
of Yale School of Medicine Professor of Strategy and Vice President, Global FP&A, Nancy McKinstry Daniel J. Starks
Former Dean of the The Clorox Company Chief Executive Officer Retired Chairman, President
Claire Babineaux-Fontenot J.L. Kellogg Graduate School and Chairman of the and Chief Executive Officer,
Chief Executive Officer, Michelle A. Kumbier Executive Board, St. Jude Medical, Inc.
of Management at President, Turf &
Feeding America Northwestern University Wolters Kluwer N.V.
Consumer Products, John G. Stratton
Briggs & Stratton, LLC Michael G. O’Grady Executive Chairman,
Chairman and Frontier Communications
Chief Executive Officer, Parent, Inc.
Northern Trust Corporation
S E N I O R M A N AG E M E N T
Robert B. Ford* Mary K. Moreland* Philip B. Boudreau* Sammy Karam Julie L. Tyler
Chairman of the Board and Executive Vice President, Senior Vice President, Senior Vice President, Senior Vice President,
Chief Executive Officer Human Resources Finance and Established Pharmaceuticals, Abbott Vascular
Chief Financial Officer Emerging Markets
Hubert L. Allen* Louis H. Morrone* Alejandro D. Wellisch
Executive Vice President, Executive Vice President, Christopher J. Calamari Scott M. Leinenweber Senior Vice President,
General Counsel and Core Diagnostics Senior Vice President, Senior Vice President, Established Pharmaceuticals,
Secretary U.S. Nutrition Licensing, Acquisitions Latin America
Daniel Salvadori* and Ventures
Lisa D. Earnhardt* Executive Vice President and Sabina A. Ewing Randel W. Woodgrift
Executive Vice President Group President, Established Senior Vice President, Sandra Lesenfants Senior Vice President,
and Group President, Pharmaceuticals Business and Technology Senior Vice President, Cardiac Rhythm
Medical Devices and Nutritional Products Services and Chief Structural Heart Management
Information Officer
Robert E. Funck, Jr.* Andrea Wainer* Fernando Mateus Uri Yaron
Executive Vice President, Executive Vice President, J. Scott House Senior Vice President, Senior Vice President,
Finance Rapid and Molecular Senior Vice President, International Nutrition Electrophysiology
Diagnostics Quality Assurance,
Joseph Manning Regulatory and Engineering Christopher J. Scoggins
Executive Vice President, Jared L. Watkin Services Senior Vice President,
Nutritional Products Executive Vice President, Commercial Operations and
Diabetes Care Marketing, Diabetes Care
CO R P O R AT E V I C E P R E S I D E N T S
Venu Ambati Fanny Chen Damian P. Halloran Pedro Malha Ric A. Schneider
Vice President, Established Vice President, Vice President, Vice President, Vice President,
Pharmaceuticals, India Core Diagnostics, China Infectious Disease, Neuromodulation Chief Procurement Officer
Rapid Diagnostics
Elizabeth M. Balthrop Keith Cienkus John A. McCoy Jr.* Eric Shroff
Vice President, Vice President. Gene Huang, Ph.D. Vice President, Vice President,
Transfusion Medicine Molecular Diagnostics Vice President, Finance and Controller Abbott Point of Care
Chief Economist
Erica L. Battaglia Michael A. Comilla Jana Mihaylova Thomas R. Stanis
Vice President, Chief Ethics Vice President, Investor Gary C. Johnson Vice President, Vice President,
and Compliance Officer Relations Vice President, Clinical, Nutrition, Asia Pacific Core Laboratory
Regulatory and Health Diagnostics, International
Keith Boettiger Elizabeth C. Cushman Economics Outcomes John M. Murphy Commercial Operations
Vice President, Vice President, Research, Cardiovascular Vice President,
Heart Failure Specialty Legal and Neuromodulation Nutrition Supply Chain Frank Weitekamper
Vice President,
Badia Boudaiffa Alison E. Davies Robert R. Kunkler Joseph L. Novak Abbott Transition
Vice President, Vice President, Treasurer Vice President, Vice President, Taxes Organization
North America Toxicology, Cardiometabolic
Commercial Operations, Thomas C. Evers Michaela Pardubicka-Jenkins James R. Wenner
Vice President, and Consumer Products Vice President, Pediatric
Diabetes Care and Services Vice President,
Government Affairs Nutrition Internal Audit
Melissa D. Brotz Brian Lehman
Vice President, John S. Frels Ansgar Resch Monica J. Wilkins
Vice President, Vice President, Vice President, International
Public Affairs and Commercial Operations, Vice President,
Corporate Marketing Research and Development, Commercial Operations, Regulatory and Quality
Immunoassay/Clinical Electrophysiology Diabetes Care
Chemistry
*Denotes executive officer 81

S H A R E H O L D E R A N D C O R P O R AT E I N F O R M AT I O N
SHARES LISTING D I V I D E N D D I R EC T D E P O S I T I N V E S TO R N E W S L I N E
The ticker symbol for Abbott’s common Shareholders may have quarterly dividends 224-667-7300
shares is ABT. The principal market for deposited directly into a checking or savings
Abbott’s common shares is the New York account at any financial institution that I N V E S TO R R E L AT I O N S
Stock Exchange. Shares are also listed on participates in the Automated Clearing Dept. 362, AP6D2
the Chicago Stock Exchange and traded on House system. For more information, please Abbott
various regional and electronic exchanges. contact the transfer agent, listed at right. 100 Abbott Park Road
Outside the United States, Abbott’s shares Abbott Park, IL 60064-6400 U.S.
are listed on the Swiss Stock Exchange. D I R EC T R EG I S T R AT I O N S Y S T E M 224-667-6100
In August 2008, Abbott implemented a
Q UA R T E R LY D I V I D E N D DAT E S Direct Registration System (DRS) for all SHAREHOLDER SERVICES,
Dividends are expected to be declared, registered shareholder transactions. T R A N S FE R AG E N T A N D R EG I S T R A R
recorded, and paid on the following Shareholders will be sent a statement in Computershare
schedule in 2024, pending approval by the lieu of a physical stock certificate for P.O. Box 43078
Board of Directors: Abbott Laboratories common shares. Providence, RI 02940-3078
Quarter Declared Recorded Paid Please contact the transfer agent with 888-332-2268 (U.S. or Canada)
First 2/16 4/15 5/15 any questions. 781-575-3910 (outside U.S. or Canada)
Second 6/14 7/15 8/15 www.computershare.com
A N N UA L M E E T I N G
Third 9/19 10/15 11/15
The Annual Meeting of Shareholders will CO R P O R AT E S EC R E TA RY
Fourth 12/13 1/15/25 2/14/25
be held virtually at 9 a.m. Central Time on Dept. 364, AP6D2
Friday, April 26, 2024. Questions regarding Abbott
TA X INFORM ATION FOR SHAREHOLDERS
the Annual Meeting may be directed to 100 Abbott Park Road
Abbott is an Illinois High Impact the Corporate Secretary. A copy of Abbott’s Abbott Park, IL 60064-6400 U.S.
Business (HIB) through June 2043 and is 2023 Form 10-K Annual Report, as filed 224-667-6100
located in a U.S. federal Foreign Trade with the U.S. Securities and Exchange
Sub-Zone (Sub-Zone 22F). Dividends may Commission, is available on Abbott’s Web WE B S I T E
be eligible for a subtraction from base site at www.abbott.com or by calling the www.abbott.com
income for Illinois income-tax purposes. Investor Newsline (above, right).
If you have any questions, please contact A B B OT T O N L I N E A N N UA L R E P O R T
your tax advisor. C EO A N D C FO C E R T I FI C AT I O N S www.abbott.com/annualreport
D I V I D E N D R E I N V E S TM E N T P L A N
In 2023, Abbott’s chief executive officer
(CEO) provided to the New York Stock G LO B A L S U S TA I N A B I L I T Y R E P O R T
The Abbott Dividend Reinvestment Exchange the annual CEO certification www.abbott.com/sustainability
Plan offers registered shareholders regarding Abbott’s compliance with the
an opportunity to purchase additional New York Stock Exchange’s corporate- S H A R E H O L D E R I N FO R M AT I O N
shares, commission-free, through governance listing standards. In addition, Shareholders with questions about their
automatic dividend reinvestment and/or Abbott’s CEO and chief financial officer accounts may contact the transfer agent,
optional cash investments. Interested (CFO) filed with the U.S. Securities and listed above.
persons may contact the transfer agent, or Exchange Commission all required
call Abbott’s Investor Newsline, as listed in Individuals who would like to receive
certifications regarding the quality of additional information, or have questions
the right-hand column. Abbott’s public disclosures in its fiscal regarding Abbott’s business activities, may
2023 reports. call the Investor Newsline at the number
listed above, write Abbott Investor Relations
at the address above, or visit Abbott’s website,
www.abbott.com.
NOTES
1) Data on file, Abbott Diabetes codes, coverage, and payment observational analysis in two 7) The LibreView data Some statements in this annual looking statements as the
Care. Data based on the policies for individual patients. German centers; Gerhard management software is report may be forward-looking result of subsequent events
number of users worldwide Abbott does not guarantee Klausmann, Ludger Rose, intended for use by both statements for purposes of the or developments, except as
for the FreeStyle Libre system third-party coverage or Alexander Seibold. patients and healthcare Private Securities Litigation required by law.
compared to the number of payment for our products or professionals to assist people Reform Act of 1995. Abbott
users for other leading personal reimburse customers for claims Gerci B, Roussel R, Riveline with diabetes and their cautions that these forward- The Abbott 2023 Annual Report
use, sensor-based glucose that are denied by third-party JP, et al. Important decrease healthcare professionals in the looking statements are subject cover and text is printed on
monitoring systems. payers. in hospitalizations for acute review, analysis and evaluation to risks and uncertainties, that recycled paper that contains a
diabetes events following of historical glucose meter data may cause actual results to minimum of 10% post-consumer
2) Based on a comparison of 3) Data on file, Abbott FreeStyle Libre® system to support effective diabetes differ materially from those fiber and the financial pages on
list prices of FreeStyle Libre Diabetes Care. initiation in people with type management. The LibreView indicated in the forward- 30% post-consumer fiber.
14 day, FreeStyle Libre 2 and 2 diabetes on basal insulin software is not intended to looking statements.
FreeStyle Libre 3 systems versus 4) Among patient-applied therapy in France. Presented at provide treatment decisions or
competitors’ CGM systems. sensors. Data on file, Abbott EADV, 20-22 September 2022, to be used as a substitute for Economic, competitive,
The actual cost to patients may Diabetes Care. Stockholm, Sweden. professional healthcare advice. governmental, technological
or may not be lower than other and other factors that may
CGM systems, depending on the 5) Canadian real-world analysis 6) The FreeStyle LibreLink app Abbott trademarks and affect Abbott’s operations are
amount covered by insurance, of flash glucose monitoring and is only compatible with certain products in-licensed by Abbott discussed in Item 1A, “Risk
if any. Abbott provides this glycemic control; Lori Berard, mobile devices and operating are shown in italics in the text Factors,” in our Securities and
information as a courtesy. Laura Brandner. systems. Please check our of this report. Exchange Commission 2023
It is subject to change and website for more information Form 10-K and are incorporated
Improving HbA1c control in about device compatibility © 2024 Abbott Laboratories
interpretation. The customer people with Type 1 or Type 2 by reference. We undertake no
is ultimately responsible for before using the app. Use of the obligation to release publicly
diabetes using flash glucose FreeStyle LibreLink app requires
determining the appropriate monitoring: a retrospective any revisions to forward-
registration with LibreView.
82

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2023 Abbott Annual Report

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2023 ANNUAL REPORT

Throughout our long history, we TABLE OF CONTENTS

Zuleyma relies on Abbott’s

DEAR FELLOW SHAREHOLDER:

2023 was the year we’ve been working toward.

business mix the breadth and depth of our product

delivered another strength with the ability to balance

PIPELINE Pipeline Productivity Putting AI to Work

Consistently • In treatment, it will have the same

100 patients may have better outcomes

50+ improve consumer empowerment.

~80% We expect generative AI to help

more accurate diagnosis. treatment and improving outcomes.

We’re exploring how we can PREDICTIVE POTENTIAL

Ultreon, Abbott’s first-of-its-kind imaging

Laboratory Abbott offers customized,

Abbott Alinity systems have been

LEADING GLOBAL MARKET-LEADING

ID NOW PANBIO HIV

Eunice participated in a clinical trial

Abbott has helped fuel the strong growth of our Electrophysiology

Our TactiFlex ablation catheter, Sensor Enabled, is the world’s first

and product development, disciplinary knowledge informs our development

broad portfolio of new, ACCELERATING THE ABBOTT PIPELINE

EFFECTIVE PRODUCT LAUNCHES

TRICLIP G4 SYSTEM NAVITOR TAVI SYSTEM AMPLATZER AMULET

To treat his mitral valve disease, Javier had an

* Investigational device in the U.S. 19

Our implantable cardioverter defibrillators (ICD) SARA WYKURZ

FOR POSITION ONLY

Abbott’s portfolio is filled PUTTING CONSUMERS IN CONTROL

After his doctors

A representative sample of our broad portfolio

Duphaston has helped more than

ADULT AND PEDIATRIC NUTRITION

When Vicky was diagnosed with

PediaSure provides complete, balanced nutrition,

Pedialyte, the No. 1 doctor-recommended

An outdoor sports enthusiast and

More than 5 million people

37 Consolidated Statement of Earnings 62 Report of Independent Registered

62 Management Report on Internal 81 Directors and Corporate Officers

Year Ended December 31 2023 2022 2021

Basic Earnings Per Common Share $÷÷3.28 $÷÷3.94 $÷÷3.97

Diluted Earnings Per Common Share $÷÷3.26 $÷÷3.91 $÷÷3.94

Average Number of Common Shares Outstanding Used for

Year Ended December 31 2023 2022 2021

Supplemental Accumulated Other Comprehensive Income (Loss) Information,

Year Ended December 31 2023 2022 2021

Cash Flow From (Used in) Investing Activities:

Cash Flow From (Used in) Financing Activities:

Supplemental Cash Flow Information:

December 31 2023 2022

Investments 799 766

Property and equipment, at cost:

Intangible assets, net of amortization 8,815 10,454

December 31 2023 2022

Long-term debt 13,599 14,522

Commitments and contingencies

Year Ended December 31 2023 2022 2021