abt-20240331

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 10-Q

(Mark One)


x			QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended March 31, 2024


o			TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from to

Commission File No. 1-2189

ABBOTT LABORATORIES


An Illinois Corporation			I.R.S. Employer Identification No.
			36-0698440

100 Abbott Park Road

Abbott Park, Illinois 60064-6400

Telephone: (224) 667-6100

Securities Registered Pursuant to Section 12(b) of the Act:



Title of Each Class	Trading Symbol(s)	Name of Each Exchange on Which Registered
Common Shares, Without Par Value	ABT	New York Stock Exchange Chicago Stock Exchange, Inc.

Indicate by check mark whether the registrant: (l) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of l934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes x No o

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 229.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes x No o

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.


Large Accelerated Filer x			Accelerated Filer o

Non-Accelerated Filer o			Smaller reporting company o

			Emerging growth company o

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. o

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes o No x

As of March 31, 2024, Abbott Laboratories had 1,739,633,759 common shares without par value outstanding.

Table of Contents

Abbott Laboratories

Table of Contents


Part I - Financial Information
			Page
Item 1. Financial Statements and Supplementary Data

Condensed Consolidated Statement of Earnings			3
Condensed Consolidated Statement of Comprehensive Income			4
Condensed Consolidated Balance Sheet			5
Condensed Consolidated Statement of Shareholders’ Investment			6
Condensed Consolidated Statement of Cash Flows			7
Notes to the Condensed Consolidated Financial Statements			8

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations			22

Item 4. Controls and Procedures			28

Part II - Other Information			28

Item 1. Legal Proceedings			28

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds			28

Item 6. Exhibits			29

Signature			30

Table of Contents

Abbott Laboratories and Subsidiaries

Condensed Consolidated Statement of Earnings

(Unaudited)

(dollars in millions except per share data; shares in thousands)


	Three Months Ended
	March 31
	2024		2023
Net sales	$	9,964	$	9,747

Cost of products sold, excluding amortization of intangible assets	4,463		4,331
Amortization of intangible assets	472		491
Research and development	684		654
Selling, general and administrative	2,959		2,762
Total operating cost and expenses	8,578		8,238

Operating earnings	1,386		1,509

Interest expense	141		153
Interest (income)	(80)		(101)
Net foreign exchange (gain) loss	—		6
Other (income) expense, net	(111)		(111)
Earnings before taxes	1,436		1,562
Taxes on earnings	211		244
Net Earnings	$	1,225	$	1,318

Basic Earnings Per Common Share	$	0.70	$	0.75

Diluted Earnings Per Common Share	$	0.70	$	0.75

Average Number of Common Shares Outstanding Used for Basic Earnings Per Common Share	1,740,203		1,741,738
Dilutive Common Stock Options	9,449		9,977
Average Number of Common Shares Outstanding Plus Dilutive Common Stock Options	1,749,652		1,751,715

Outstanding Common Stock Options Having No Dilutive Effect	6,892		7,332

The accompanying notes to the condensed consolidated financial statements are an integral part of this statement.

Table of Contents

Abbott Laboratories and Subsidiaries

Condensed Consolidated Statement of Comprehensive Income

(Unaudited)

(dollars in millions)


	Three Months Ended
	March 31
	2024		2023
Net Earnings	$	1,225	$	1,318
Foreign currency translation gain (loss) adjustments	(386)		139
Net actuarial gains (losses) and amortization of net actuarial losses and prior service costs and credits, net of taxes of $1 in 2024 and $— in 2023	4		2
Net gains (losses) for derivative instruments designated as cash flow hedges and other, net of taxes of $30 in 2024 and $(58) in 2023	55		(129)
Other comprehensive income (loss)	(327)		12
Comprehensive Income	$	898	$	1,330


	March 31, 2024		December 31, 2023
Supplemental Accumulated Other Comprehensive Income (Loss) Information, net of tax:
Cumulative foreign currency translation (loss) adjustments	$	(6,890)	$	(6,504)
Net actuarial (losses) and prior service (costs) and credits	(1,372)		(1,376)
Cumulative gains (losses) on derivative instruments designated as cash flow hedges	96		41
Accumulated Other Comprehensive Income (Loss)	$	(8,166)	$	(7,839)

The accompanying notes to the condensed consolidated financial statements are an integral part of this statement.

Table of Contents

Abbott Laboratories and Subsidiaries

Condensed Consolidated Balance Sheet

(Unaudited)

(dollars in millions)


	March 31, 2024		December 31, 2023
Assets
Current Assets:
Cash and cash equivalents	$	6,284	$	6,896
Short-term investments	367		383
Trade receivables, less allowances of $439 in 2024 and $444 in 2023	6,605		6,565
Inventories:
Finished products	4,063		3,946
Work in process	881		807
Materials	1,883		1,817
Total inventories	6,827		6,570
Prepaid expenses and other receivables	2,293		2,256
Total Current Assets	22,376		22,670
Investments	818		799
Property and equipment, at cost	22,055		21,933
Less: accumulated depreciation and amortization	11,948		11,779
Net property and equipment	10,107		10,154
Intangible assets, net of amortization	8,296		8,815
Goodwill	23,383		23,679
Deferred income taxes and other assets	7,487		7,097
	$	72,467	$	73,214
Liabilities and Shareholders’ Investment
Current Liabilities:
Trade accounts payable	$	4,178	$	4,295
Salaries, wages and commissions	1,092		1,597
Other accrued liabilities	5,220		5,422
Dividends payable	959		955
Income taxes payable	562		492
Current portion of long-term debt	2,010		1,080
Total Current Liabilities	14,021		13,841
Long-term debt	12,576		13,599
Post-employment obligations, deferred income taxes and other long-term liabilities	6,827		6,947
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: 2024: 1,989,789,999; 2023: 1,987,883,852	24,726		24,869
Common shares held in treasury, at cost — Shares: 2024: 250,155,515; 2023: 253,807,494	(15,761)		(15,981)
Earnings employed in the business	38,011		37,554
Accumulated other comprehensive income (loss)	(8,166)		(7,839)
Total Abbott Shareholders’ Investment	38,810		38,603
Noncontrolling Interests in Subsidiaries	233		224
Total Shareholders’ Investment	39,043		38,827
	$	72,467	$	73,214

The accompanying notes to the condensed consolidated financial statements are an integral part of this statement.

Table of Contents

Abbott Laboratories and Subsidiaries

Condensed Consolidated Statement of Shareholders’ Investment

(Unaudited)

(in millions except shares and per share data)


	Three Months Ended March 31
	2024		2023
Common Shares:
Balance at January 1
Shares: 2024: 1,987,883,852; 2023: 1,986,519,278	$	24,869	$	24,709
Issued under incentive stock programs
Shares: 2024: 1,906,147; 2023: 384,892	87		16
Share-based compensation	322		296
Issuance of restricted stock awards	(552)		(533)
Balance at March 31
Shares: 2024: 1,989,789,999; 2023: 1,986,904,170	$	24,726	$	24,488

Common Shares Held in Treasury:
Balance at January 1
Shares: 2024: 253,807,494; 2023: 248,724,257	$	(15,981)	$	(15,229)
Issued under incentive stock programs
Shares: 2024: 3,838,255; 2023: 3,933,165	242		242
Purchased
Shares: 2024: 186,276; 2023: 3,166,279	(22)		(320)
Balance at March 31
Shares: 2024: 250,155,515; 2023: 247,957,371	$	(15,761)	$	(15,307)

Earnings Employed in the Business:
Balance at January 1	$	37,554	$	35,257
Net earnings	1,225		1,318
Cash dividends declared on common shares (per share — 2024: $0.55; 2023: $0.51)	(960)		(890)
Effect of common and treasury share transactions	192		183
Balance at March 31	$	38,011	$	35,868

Accumulated Other Comprehensive Income (Loss):
Balance at January 1	$	(7,839)	$	(8,051)
Other comprehensive income (loss)	(327)		12
Balance at March 31	$	(8,166)	$	(8,039)

Noncontrolling Interests in Subsidiaries:
Balance at January 1	$	224	$	219
Noncontrolling Interests’ share of income, business combinations, net of distributions and share repurchases	9		3
Balance at March 31	$	233	$	222

The accompanying notes to condensed consolidated financial statements are an integral part of this statement.

Table of Contents

Abbott Laboratories and Subsidiaries

Condensed Consolidated Statement of Cash Flows

(Unaudited)

(dollars in millions)


	Three Months Ended March 31
	2024		2023
Cash Flow From (Used in) Operating Activities:
Net earnings	$	1,225	$	1,318
Adjustments to reconcile net earnings to net cash from operating activities —
Depreciation	333		315
Amortization of intangible assets	472		491
Share-based compensation	304		281
Trade receivables	(151)		233
Inventories	(410)		(419)
Other, net	(748)		(1,076)
Net Cash From Operating Activities	1,025		1,143

Cash Flow From (Used in) Investing Activities:
Acquisitions of property and equipment	(398)		(380)


Sales (purchases) of other investment securities, net	(28)		(86)
Other	1		4
Net Cash From (Used in) Investing Activities	(425)		(462)

Cash Flow From (Used in) Financing Activities:
Net borrowings (repayments) of short-term debt and other	(127)		(42)


Purchases of common shares	(226)		(540)
Proceeds from stock options exercised	134		62
Dividends paid	(957)		(890)
Net Cash From (Used in) Financing Activities	(1,176)		(1,410)

Effect of exchange rate changes on cash and cash equivalents	(36)		8

Net Increase (Decrease) in Cash and Cash Equivalents	(612)		(721)
Cash and Cash Equivalents, Beginning of Year	6,896		9,882
Cash and Cash Equivalents, End of Period	$	6,284	$	9,161

The accompanying notes to the condensed consolidated financial statements are an integral part of this statement.

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Abbott Laboratories and Subsidiaries

Notes to the Condensed Consolidated Financial Statements

March 31, 2024

(Unaudited)

Note 1 — Basis of Presentation

The accompanying unaudited, condensed consolidated financial statements have been prepared pursuant to rules and regulations of the Securities and Exchange Commission and, therefore, do not include all information and footnote disclosures normally included in audited financial statements. However, in the opinion of management, all adjustments (which include only normal adjustments) necessary to present fairly the results of operations, financial position and cash flows have been made. It is suggested that these statements be read in conjunction with the financial statements included in Abbott’s Annual Report on Form 10-K for the year ended December 31, 2023. The condensed consolidated financial statements include the accounts of the parent company and subsidiaries, after elimination of intercompany transactions.

Note 2 — New Accounting Standards

Recent Accounting Standards Not Yet Adopted

In November 2023, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures, which expands the breadth and frequency of required segment disclosures. The guidance is required to be applied retrospectively to all periods presented in the financial statements. The standard becomes effective for Abbott for full year 2024 reporting and for interim periods beginning in the first quarter of 2025. Abbott is currently evaluating the impact of this new standard on its consolidated financial statements.

In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures, which requires an entity to disclose annually additional information related to the company's income tax rate reconciliation and income taxes paid during the period. The guidance should be applied prospectively with the option to apply the standard retrospectively. The standard becomes effective for Abbott for full year 2025 reporting. Abbott is currently evaluating the impact of this new standard on its consolidated financial statements.

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Abbott Laboratories and Subsidiaries

Notes to the Condensed Consolidated Financial Statements

March 31, 2024

(Unaudited)

Note 3 — Revenue

Abbott’s revenues are derived primarily from the sale of a broad line of health care products under short-term receivable arrangements. Abbott has four reportable segments: Established Pharmaceutical Products, Diagnostic Products, Nutritional Products, and Medical Devices.

The following tables provide detail by sales category:


	Three Months Ended March 31, 2024						Three Months Ended March 31, 2023
(in millions)	U.S.		Int’l		Total		U.S.		Int’l		Total
Established Pharmaceutical Products —
Key Emerging Markets	$	—	$	928	$	928	$	—	$	912	$	912
Other	—		298		298		—		277		277
Total	—		1,226		1,226		—		1,189		1,189
Nutritionals —
Pediatric Nutritionals	514		495		1,009		459		465		924
Adult Nutritionals	364		695		1,059		353		690		1,043
Total	878		1,190		2,068		812		1,155		1,967
Diagnostics —
Core Laboratory	310		895		1,205		289		893		1,182
Molecular	42		87		129		47		100		147
Point of Care	98		41		139		93		41		134
Rapid Diagnostics	481		260		741		906		319		1,225
Total	931		1,283		2,214		1,335		1,353		2,688
Medical Devices —
Rhythm Management	271		291		562		260		267		527
Electrophysiology	269		318		587		238		267		505
Heart Failure	237		68		305		218		63		281
Vascular	254		435		689		218		399		617
Structural Heart	233		282		515		210		251		461
Neuromodulation	181		45		226		155		41		196
Diabetes Care	589		980		1,569		479		834		1,313
Total	2,034		2,419		4,453		1,778		2,122		3,900

Other	3		—		3		3		—		3

Total	$	3,846	$	6,118	$	9,964	$	3,928	$	5,819

SEC Form 10-Q filed by Abbott Laboratories