0000001800FALSENew York Stock ExchangeChicago Stock Exchange, Inc.00000018002023-07-202023-07-200000001800exch:XCHI2023-07-202023-07-200000001800exch:XNYS2023-07-202023-07-20

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D. C. 20549
_______________________________________________________
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
July 20, 2023
Date of Report (Date of earliest event reported)
ABBOTT LABORATORIES
(Exact name of registrant as specified in charter)
_______________________________________________________

Illinois1-218936-0698440
(State or other Jurisdiction
of Incorporation)
(Commission File Number)(IRS Employer
Identification  No.)
_______________________________________________________
100 Abbott Park Road
Abbott Park, Illinois 60064-6400
(Address of principal executive offices)(Zip Code)
Registrant’s telephone number, including area code: (224) 667-6100
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
oWritten communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
oSoliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
oPre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
oPre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
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 ValueABT
New York Stock Exchange
Chicago Stock Exchange, Inc.
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
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



Item 2.02    Results of Operations and Financial Condition
On July 20, 2023, Abbott Laboratories announced its results of operations for the second quarter 2023.
Furnished as Exhibit 99.1, and incorporated herein by reference, is the news release issued by Abbott announcing those results. In that news release, Abbott uses various non-GAAP financial measures including, among others, net earnings excluding specified items. These non-GAAP financial measures adjust for factors that are unusual or unpredictable, such as expenses primarily associated with acquisitions, restructuring actions, cost reduction initiatives, a voluntary recall, charges for intangible asset impairments, fair value adjustments to the contingent consideration related to business acquisitions, certain regulatory costs, tax benefits associated with specified items, net tax expense as a result of the resolution of various tax positions related to prior years, and excess tax benefits associated with share-based compensation. These non-GAAP financial measures also exclude intangible amortization expense to provide greater visibility on the results of operations excluding these costs, similar to how Abbott’s management internally assesses performance. Abbott’s management believes the presentation of these non-GAAP financial measures provides useful information to investors regarding Abbott’s results of operations as these non-GAAP financial measures allow investors to better evaluate ongoing business performance. Abbott’s management also uses these non-GAAP financial measures internally to monitor performance of the businesses. Abbott, however, cautions investors to consider these non-GAAP financial measures in addition to, and not as a substitute for, financial measures prepared in accordance with GAAP.
Item 9.01    Financial Statements and Exhibits
Exhibit No.Exhibit
104Cover Page Interactive Data File (the cover page XBRL tags are embedded in the Inline XBRL document).



SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
ABBOTT LABORATORIES
Date: July 20, 2023 By:/s/ Robert E. Funck, Jr.
Robert E. Funck, Jr.
Executive Vice President, Finance and Chief Financial Officer


Exhibit 99.1 9.1
abbottlogo.jpg
  News Release

Abbott Reports Second-Quarter 2023 Results; Increases Outlook For Underlying Base Business

Sales of $10.0 billion driven by strong underlying base business performance
Reported sales decreased 11.4 percent due to anticipated decline in COVID-19 testing-related sales versus prior year
Organic sales growth for underlying base business of 11.5 percent, led by Medical Devices, Established Pharmaceuticals and Nutrition
Continues to strengthen portfolio with new product approvals and expanded reimbursement coverage
ABBOTT PARK, Ill., July 20, 2023 — Abbott today announced financial results for the second quarter ended June 30, 2023.

Second-quarter GAAP diluted EPS of $0.78 and adjusted diluted EPS of $1.08, which excludes specified items.
Projected full-year 2023 diluted EPS on a GAAP basis of $3.02 to $3.22.
Projected full-year adjusted EPS of $4.30 to $4.50 remains unchanged but reflects an increased outlook for the underlying base business offset by a lower forecasted earnings contribution from COVID-19 testing-related sales.
Abbott now projects full-year 2023 organic sales growth, excluding COVID-19 testing-related sales1, to be in the low double-digits2 and COVID-19 testing-related sales of approximately $1.3 billion.
In May, Abbott received U.S. Food and Drug Administration (FDA) approval of its TactiFlex® Ablation Catheter, Sensor Enabled™, the world's first ablation catheter with a unique flexible electrode tip and contact force sensing technology to treat patients with atrial fibrillation (AFib).
In June, Abbott announced its FreeStyle Libre® 2 system is the first and only continuous glucose monitoring (CGM) system to receive expanded national reimbursement in France to now include all people with diabetes who use insulin.
In June, Abbott received U.S. FDA approval of its AVEIR™ dual chamber (DR) leadless pacemaker system, the world's first dual chamber leadless pacing system that treats people with abnormal heart rhythms.


"We're achieving strong growth in our underlying base business," said Robert B. Ford, chairman and chief executive officer, Abbott. "We expect our highly productive pipeline to sustain the momentum we're building this year and position us well for growth in the future."
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SECOND-QUARTER BUSINESS OVERVIEW
Management believes that measuring sales growth rates on an organic basis, which excludes the impact of foreign exchange, the impact of exiting the pediatric nutrition business in China, and the impact of the acquisition of Cardiovascular Systems, Inc. (CSI) is an appropriate way for investors to best understand the core underlying performance of the business. Management further believes that measuring sales growth rates on an organic basis excluding COVID-19 tests is an appropriate way for investors to best understand underlying base business performance as the COVID-19 pandemic has shifted to an endemic state, resulting in significantly lower demand for COVID-19 tests.

Note: In order to compute results excluding the impact of exchange rates, current year U.S. dollar 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 average foreign exchange rates.


Second Quarter 2023 Results (2Q23)
Sales 2Q23 ($ in millions)Total CompanyNutritionDiagnosticsEstablished PharmaceuticalsMedical Devices
U.S.3,758 881 961 — 1,913 
International6,220 1,195 1,356 1,287 2,382 
Total reported9,978 2,076 2,317 1,287 4,295 
% Change vs. 2Q22
U.S.(23.2)15.7 (60.7)n/a13.3 
International(2.3)0.3 (26.8)5.2 13.6 
Total reported(11.4)6.3 (46.0)5.2 13.5 
Impact of foreign exchange(2.5)(3.0)(1.3)(7.4)(1.9)
Impact of CSI acquisition0.4 — — — 1.2 
Impact of business exit(0.1)(0.6)— — — 
Organic(9.2)9.9 (44.7)12.6 14.2 
Impact of COVID-19 testing sales (3)
(20.7)— (51.8)— — 
Organic (excluding COVID-19 tests)11.5 9.9 7.1 12.6 14.2 
    U.S.10.9 15.7 5.2 n/a11.0 
    International11.9 6.1 8.2 12.6 16.8 

First Half 2023 Results (1H23)
Sales 1H23 ($ in millions)
Total CompanyNutritionDiagnosticsEstablished PharmaceuticalsMedical Devices
U.S.7,686 1,693 2,296 — 3,691 
International12,039 2,350 2,709 2,476 4,504 
Total reported19,725 4,043 5,005 2,476 8,195 
% Change vs. 1H22
U.S.(21.8)17.7 (55.4)n/a14.2 
International(9.6)(2.4)(38.4)4.4 8.6 
Total reported(14.8)5.1 (47.6)4.4 11.0 
Impact of foreign exchange(2.9)(3.4)(1.6)(7.5)(2.9)
Impact of CSI acquisition0.2 — — — 0.6 
Impact of business exit(0.2)(1.6)— — — 
Organic(11.9)10.1 (46.0)11.9 13.3 
Impact of COVID-19 testing sales (3)
(22.6)— (51.7)— — 
Organic (excluding COVID-19 tests)10.7 10.1 5.7 11.9 13.3 
    U.S.11.7 17.7 2.7 n/a12.9 
    International10.2 5.4 7.5 11.9 13.7 
Refer to page 16 for a reconciliation of adjusted historical revenue to reported revenue.

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Nutrition

Second Quarter 2023 Results (2Q23)

Sales 2Q23 ($ in millions)TotalPediatricAdult
U.S.881 507 374 
International1,195 517 678 
Total reported2,076 1,024 1,052 
% Change vs. 2Q22
U.S.15.7 22.5 7.6 
International0.3 1.1 (0.2)
Total reported6.3 10.6 2.5 
Impact of foreign exchange(3.0)(2.3)(3.5)
Impact of business exit(0.6)(1.6)— 
Organic9.9 14.5 6.0 
    U.S.15.7 22.5 7.6 
    International6.1 7.5 5.2 
Worldwide Nutrition sales increased 6.3 percent on a reported basis and 9.9 percent on an organic basis in the second quarter. Refer to page 16 for a reconciliation of adjusted historical revenue to reported revenue.
In Pediatric Nutrition, global sales increased 10.6 percent on a reported basis and 14.5 percent on an organic basis. In the U.S., sales growth of 22.5 percent was primarily driven by continued market share recovery in the infant formula business following a voluntary recall of certain products last year.
In Adult Nutrition, global sales increased 2.5 percent on a reported basis and 6.0 percent on an organic basis, which was led by strong global growth of Ensure®, Abbott's market-leading complete and balanced nutrition brand.


First Half 2023 Results (1H23)

Sales 1H23 ($ in millions)TotalPediatricAdult
U.S.1,693 966 727 
International2,350 982 1,368 
Total reported4,043 1,948 2,095 
% Change vs. 1H22
U.S.17.7 28.6 5.8 
International(2.4)(3.8)(1.4)
Total reported5.1 9.9 1.0 
Impact of foreign exchange(3.4)(2.6)(4.1)
Impact of business exit(1.6)(3.8)— 
Organic10.1 16.3 5.1 
    U.S.17.7 28.6 5.8 
    International5.4 6.4 4.8 



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Diagnostics

Second Quarter 2023 Results (2Q23)
Sales 2Q23 ($ in millions)TotalCore LaboratoryMolecularPoint of CareRapid Diagnostics *
U.S.961 311 43 99 508 
International1,356 982 98 43 233 
Total reported2,317 1,293 141 142 741 
% Change vs. 2Q22
U.S.(60.7)8.6 (40.1)(2.3)(74.4)
International(26.8)5.1 (29.9)13.1 (68.5)
Total reported(46.0)5.9 (33.3)1.9 (72.8)
Impact of foreign exchange(1.3)(3.6)(1.2)(0.5)(0.5)
Organic(44.7)9.5 (32.1)2.4 (72.3)
Impact of COVID-19 testing sales (3)
(51.8)(0.6)(30.8)— (75.6)
Organic (excluding COVID-19 tests)7.1 10.1 (1.3)2.4 3.3 
    U.S.5.2 9.4 3.4 (2.3)4.0 
    International8.2 10.4 (3.1)15.2 2.3 

As expected, Diagnostics sales growth in the second quarter was negatively impacted by year-over-year declines in COVID-19 testing-related sales3. Worldwide COVID-19 testing sales were $263 million in the second quarter of 2023 compared to $2.324 billion in the second quarter of the prior year.

Excluding COVID-19 testing-related sales, global Diagnostics sales increased 4.3 percent on a reported basis and 7.1 percent on an organic basis.


First Half 2023 Results (1H23)
Sales 1H23 ($ in millions)TotalCore LaboratoryMolecularPoint of CareRapid Diagnostics *
U.S.2,296 600 90 192 1,414 
International2,709 1,875 198 84 552 
Total reported5,005 2,475 288 276 1,966 
% Change vs. 1H22
U.S.(55.4)8.2 (63.2)0.1 (66.0)
International(38.4)1.3 (48.9)11.2 (73.5)
Total reported(47.6)2.9 (54.4)3.2 (68.5)
Impact of foreign exchange(1.6)(4.4)(1.1)(0.8)(0.6)
Organic(46.0)7.3 (53.3)4.0 (67.9)
Impact of COVID-19 testing sales (3)
(51.7)(1.3)(38.8)— (73.6)
Organic (excluding COVID-19 tests)5.7 8.6 (14.5)4.0 5.7 
    U.S.2.7 9.2 (21.0)0.1 1.5 
    International7.5 8.5 (11.6)14.0 12.3 
*The Acelis Connected Health business was internally transferred from Rapid Diagnostics to Heart Failure on January 1, 2023. As a result, $28 million of sales in the second quarter of 2022 and $57 million in the first half 2022 were moved from Rapid Diagnostics to Heart Failure.


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Established Pharmaceuticals

Second Quarter 2023 Results (2Q23)
Sales 2Q23 ($ in millions)TotalKey Emerging MarketsOther
U.S.— — — 
International1,287 990 297 
Total reported1,287 990 297 
% Change vs. 2Q22
U.S.n/an/an/a
International5.2 4.6 7.1 
Total reported5.2 4.6 7.1 
Impact of foreign exchange(7.4)(8.4)(4.4)
Organic 12.6 13.0 11.5 
    U.S.n/an/an/a
    International12.6 13.0 11.5 
Established Pharmaceuticals sales increased 5.2 percent on a reported basis and 12.6 percent on an organic basis in the second quarter.

Key Emerging Markets include several emerging countries that represent the most attractive long-term growth opportunities for Abbott's branded generics product portfolio. Sales in these geographies increased 4.6 percent on a reported basis and 13.0 percent on an organic basis, led by growth in several geographies and therapeutic areas, including gastroenterology, women's health, and central nervous system/pain management.


First Half 2023 Results (1H23)
Sales 1H23 ($ in millions)TotalKey Emerging MarketsOther
U.S.— — — 
International2,476 1,902 574 
Total reported2,476 1,902 574 
% Change vs. 1H22
U.S.n/an/an/a
International4.4 2.7 10.8 
Total reported4.4 2.7 10.8 
Impact of foreign exchange(7.5)(8.0)(5.5)
Organic 11.9 10.7 16.3 
    U.S.n/an/an/a
    International11.9 10.7 16.3 











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Medical Devices

Second Quarter 2023 Results (2Q23)
Sales 2Q23 ($ in millions)TotalRhythm ManagementElectro-
physiology
Heart Failure *VascularStructural HeartNeuro-modulationDiabetes Care
U.S.1,913 269 245 226 264 219 185 505 
International2,382 314 308 69 451 279 42 919 
Total reported4,295 583 553 295 715 498 227 1,424 
% Change vs. 2Q22
U.S.13.3 2.0 8.8 8.9 15.4 5.9 17.6 26.6 
International13.6 10.3 18.7 11.9 6.1 19.8 5.1 15.8 
Total reported13.5 6.3 14.1 9.6 9.3 13.3 15.1 19.4 
Impact of foreign exchange(1.9)(1.9)(2.8)(0.3)(2.3)(1.5)(1.1)(2.0)
Impact of CSI acquisition1.2 — — — 6.6 — — — 
Organic 14.2 8.2 16.9 9.9 5.0 14.8 16.2 21.4 
    U.S.11.0 2.0 8.8 8.9 (1.9)5.9 17.6 26.6 
    International16.8 14.0 23.9 13.2 8.7 22.6 10.5 18.8 
Worldwide Medical Devices sales increased 13.5 percent on a reported basis and 14.2 percent on an organic basis in the second quarter. Sales growth was led by double-digit organic growth in Diabetes Care, Electrophysiology, Structural Heart and Neuromodulation. Several recently launched products and new indications contributed to the strong performance, including Amplatzer® Amulet®, Navitor®, TriClip®, and Aveir.

In Electrophysiology, internationally, sales grew high-teens on a reported basis and more than 20 percent on an organic basis, which includes high-teens growth in Europe.

In Diabetes Care, Freestyle Libre sales were $1.3 billion, which represents sales growth of 22.9 percent on a reported basis and 24.7 percent on an organic basis.

First Half 2023 Results (1H23)
Sales 1H23 ($ in millions)TotalRhythm ManagementElectro-
physiology
Heart Failure *VascularStructural HeartNeuro-modulationDiabetes Care
U.S.3,691 529 483 444 482 429 340 984 
International4,504 581 575 132 850 530 83 1,753 
Total reported8,195 1,110 1,058 576 1,332 959 423 2,737 
% Change vs. 1H22
U.S.14.2 3.2 9.4 10.0 10.3 8.1 13.2 32.7 
International8.6 3.6 8.7 14.1 1.8 16.8 9.1 11.2 
Total reported11.0 3.4 9.0 10.9 4.7 12.8 12.4 18.1 
Impact of foreign exchange(2.9)(2.8)(3.8)(0.8)(3.1)(2.7)(1.4)(3.1)
Impact of CSI acquisition0.6 — — — 3.4 — — — 
Organic 13.3 6.2 12.8 11.7 4.4 15.5 13.8 21.2 
    U.S.12.9 3.2 9.4 10.0 1.3 8.1 13.2 32.7 
    International13.7 8.9 15.7 17.4 6.1 22.0 16.1 15.8 

*The Acelis Connected Health business was internally transferred from Rapid Diagnostics to Heart Failure on January 1, 2023. As a result, $28 million of sales in the second quarter of 2022 and $57 million in the first half of 2022 were moved from Rapid Diagnostics to Heart Failure.

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ABBOTT'S EARNINGS-PER-SHARE GUIDANCE
Abbott projects full-year 2023 diluted earnings per share under GAAP of $3.02 to $3.22. Abbott forecasts specified items for the full-year 2023 of $1.28 per share primarily related to intangible amortization, costs associated with acquisitions, restructuring and cost reduction initiatives and other net expenses. Excluding specified items, projected adjusted diluted earnings per share would be $4.30 to $4.50 for the full-year 2023.
ABBOTT DECLARES 398TH CONSECUTIVE QUARTERLY DIVIDEND
On June 9, 2023, the board of directors of Abbott declared the company's quarterly dividend of $0.51 per share. Abbott's cash dividend is payable August 15, 2023, to shareholders of record at the close of business on July 14, 2023.

Abbott has increased its dividend payout for 51 consecutive years and is a member of the S&P 500 Dividend Aristocrats Index, which tracks companies that have annually increased their dividend for at least 25 consecutive years.


About Abbott:
Abbott is a global healthcare leader that helps people live more fully at all stages of life. Our portfolio of life-changing technologies spans the spectrum of healthcare, with leading businesses and products in diagnostics, medical devices, nutritionals and branded generic medicines. Our 115,000 colleagues serve people in more than 160 countries.

Connect with us at www.abbott.com, on LinkedIn at www.linkedin.com/company/abbott-/, on Facebook at www.facebook.com/Abbott and on Twitter @AbbottNews.
Abbott will live-webcast its second-quarter earnings conference call through its Investor Relations website at www.abbottinvestor.com at 8:30 a.m. Central time today. An archived edition of the webcast will be available later in the day.
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— Private Securities Litigation Reform Act of 1995 —
A Caution Concerning Forward-Looking Statements

Some statements in this news release may be forward-looking statements for purposes of the Private Securities Litigation Reform Act of 1995. Abbott cautions that these forward-looking statements are subject to risks and uncertainties that may cause actual results to differ materially from those indicated in the forward-looking statements. Economic, competitive, governmental, technological and other factors that may affect Abbott's operations are discussed in Item 1A, "Risk Factors" in our Annual Report on Form 10-K for the year ended Dec. 31, 2022, and are incorporated herein by reference. Abbott undertakes no obligation to release publicly any revisions to forward-looking statements as a result of subsequent events or developments, except as required by law.
Abbott Financial:
Michael Comilla, 224-668-1872
Ryan Aliff, 224-667-2299
Abbott Media:
Karen Twigg May, 224-668-2681
Kate Dyer, 224-668-9965
1For the full-year 2022, COVID-19 testing-related sales were $8.368 billion and total worldwide sales were $43.653 billion.

2Abbott has not provided the related GAAP financial measure for organic sales growth, excluding COVID-19 testing-related sales, on a forward-looking basis because the company is unable to predict the impact of foreign exchange due to the unpredictability of future changes in foreign exchange rates, which could significantly impact reported sales growth.

3Diagnostic sales and COVID-19 testing-related sales in 2023 and 2022 are summarized below:

Sales 2Q23COVID Tests Sales 2Q23
($ in millions)U.S.Int'lTotalU.S.Int'lTotal
Total Diagnostics961 1,356 2,317 216 47 263 
Core Laboratory311 982 1,293 
Molecular43 98 141 
Rapid Diagnostics508 233 741 210 40 250 
Sales 2Q22COVID Tests Sales 2Q22
($ in millions)U.S.Int'lTotalU.S.Int'lTotal
Total Diagnostics2,441 1,853 4,294 1,732 592 2,324 
Core Laboratory287 934 1,221 12 
Molecular71 141 212 34 41 75 
Rapid Diagnostics1,982 740 2,722 1,695 542 2,237 

Sales 1H23COVID Tests Sales 1H23
($ in millions)U.S.Int'lTotalU.S.Int'lTotal
Total Diagnostics2,296 2,709 5,005 824 169 993 
Core Laboratory600 1,875 2,475 11 
Molecular90 198 288 14 14 28 
Rapid Diagnostics1,414 552 1,966 806 148 954 
Sales 1H22COVID Tests Sales 1H22
($ in millions)U.S.Int'lTotalU.S.Int'lTotal
Total Diagnostics5,153 4,398 9,551 3,720 1,908 5,628 
Core Laboratory555 1,850 2,405 32 40 
Molecular243 389 632 148 173 321 
Rapid Diagnostics4,163 2,084 6,247 3,564 1,703 5,267 




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Abbott Laboratories and Subsidiaries
Condensed Consolidated Statement of Earnings
Second Quarter Ended June 30, 2023 and 2022
(in millions, except per share data)
(unaudited)




2Q232Q22% Change
Net Sales$9,978$11,257(11.4)
Cost of products sold, excluding amortization expense4,483 4,933 (9.1)
Amortization of intangible assets498 507 (1.7)
Research and development715 684 4.5 
Selling, general, and administrative2,740 2,757 (0.6)
Total Operating Cost and Expenses8,436 8,881 (5.0)
Operating Earnings1,542 2,376 (35.1)
Interest expense, net61 106 (41.7)
Net foreign exchange (gain) loss21 — n/m
Other (income) expense, net(176)(82)115.9 
Earnings before taxes1,636 2,352 (30.4)
Taxes on earnings261 334 (22.0)1)
Net Earnings$1,375$2,018(31.8)
Net Earnings excluding Specified Items, as described below$1,893$2,542(25.5)2)
Diluted Earnings per Common Share$0.78$1.14(31.6)
Diluted Earnings per Common Share,
excluding Specified Items, as described below
$1.08$1.43(24.5)2)
Average Number of Common Shares Outstanding
Plus Dilutive Common Stock Options
1,750 1,765 


NOTES:
See tables on page 13 for an explanation of certain non-GAAP financial information.
n/m = Percent change is not meaningful.
See footnotes on the following page.
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1)2023 Taxes on Earnings includes the recognition of approximately $40 million of net tax expense as a result of the resolution of various tax positions related to prior years.
2)2023 Net Earnings and Diluted Earnings per Common Share, excluding Specified Items, excludes net after-tax charges of $518 million, or $0.30 per share, for intangible amortization, charges related to restructuring and cost reduction initiatives, expenses associated with acquisitions and other net expenses.
2022 Net Earnings and Diluted Earnings per Common Share, excluding Specified Items, excludes net after-tax charges of $524 million, or $0.29 per share, for intangible amortization, charges related to a voluntary recall and other net expenses primarily associated with acquisitions.


















































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Abbott Laboratories and Subsidiaries
Condensed Consolidated Statement of Earnings
First Half Ended June 30, 2023 and 2022
(in millions, except per share data)
(unaudited)




1H231H22% Change
Net Sales$19,725$23,152(14.8)
Cost of products sold, excluding amortization expense8,814 9,920 (11.2)
Amortization of intangible assets989 1,019 (2.9)
Research and development1,369 1,381 (0.9)
Selling, general, and administrative5,502 5,544 (0.8)
Total Operating Cost and Expenses16,674 17,864 (6.7)
Operating Earnings3,051 5,288 (42.3)
Interest expense, net113 223 (49.2)
Net foreign exchange (gain) loss27 (3)n/m
Other (income) expense, net(287)(160)79.3 
Earnings before taxes3,198 5,228 (38.8)
Taxes on earnings505 763 (33.8)1)
Net Earnings$2,693$4,465(39.7)
Net Earnings excluding Specified Items, as described below$3,708$5,619(34.0)2)
Diluted Earnings per Common Share$1.53$2.51(39.0)
Diluted Earnings per Common Share,
excluding Specified Items, as described below
$2.11$3.16(33.2)2)
Average Number of Common Shares Outstanding
Plus Dilutive Common Stock Options
1,751 1,770 



NOTES:
See tables on page 14 for an explanation of certain non-GAAP financial information.
n/m = Percent change is not meaningful.
See footnotes on the following page.









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1)2023 Taxes on Earnings includes the recognition of approximately $62 million of net tax expense as a result of the resolution of various tax positions related to prior years.
2022 Taxes on Earnings includes the recognition of approximately $27 million of net tax expense as a result of the resolution of various tax positions related to prior years and approximately $32 million in excess tax benefits associated with share-based compensation.

2)2023 Net Earnings and Diluted Earnings per Common Share, excluding Specified Items, excludes net after-tax charges of $1.015 billion, or $0.58 per share, for intangible amortization, charges related to restructuring and cost reduction initiatives, expenses associated with acquisitions and other net expenses.
2022 Net Earnings and Diluted Earnings per Common Share, excluding Specified Items, excludes net after-tax charges of $1.154 billion, or $0.65 per share, for intangible amortization, charges related to a voluntary recall and other net expenses primarily associated with acquisitions.



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Abbott Laboratories and Subsidiaries
Non-GAAP Reconciliation of Financial Information
Second Quarter Ended June 30, 2023 and 2022
(in millions, except per share data)
(unaudited)
2Q23
As
Reported (GAAP)
Specified ItemsAs
Adjusted
Intangible Amortization
$498 $(498)$ 
Gross Margin
4,997 529 5,526 
R&D
715 (72)643 
SG&A
2,740 (22)2,718 
Other (income) expense, net
(176)57 (119)
Earnings before taxes
1,636 566 2,202 
Taxes on Earnings
261 48 309 
Net Earnings
1,375 518 1,893 
Diluted Earnings per Share
$0.78 $0.30 $1.08 

Specified items reflect intangible amortization expense of $498 million and other net expenses of $68 million associated with restructuring actions, costs associated with acquisitions and other net expenses. See page 17 for additional details regarding specified items.
2Q22
As
Reported (GAAP)
Specified ItemsAs
Adjusted
Intangible Amortization
$507 $(507)$ 
Gross Margin
5,817 563 6,380 
R&D
684 (32)652 
SG&A
2,757 (14)2,743 
Other (income) expense, net
(82)(12)(94)
Earnings before taxes
2,352 621 2,973 
Taxes on Earnings
334 97 431 
Net Earnings
2,018 524 2,542 
Diluted Earnings per Share
$1.14 $0.29 $1.43 

Specified items reflect intangible amortization expense of $507 million and other net expenses of $114 million that includes costs associated with a product recall, acquisitions, and other net expenses. See page 18 for additional details regarding specified items.
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Page 13 of 20



Abbott Laboratories and Subsidiaries
Non-GAAP Reconciliation of Financial Information
First Half Ended June 30, 2023 and 2022
(in millions, except per share data)
(unaudited)
1H23
As
Reported (GAAP)
Specified ItemsAs
Adjusted
Intangible Amortization
$989 $(989)$ 
Gross Margin
9,922 1,049 10,971 
R&D
1,369 (98)1,271 
SG&A
5,502 (24)5,478 
Other (income) expense, net
(287)57 (230)
Earnings before taxes
3,198 1,114 4,312 
Taxes on Earnings
505 99 604 
Net Earnings
2,693 1,015 3,708 
Diluted Earnings per Share
$1.53 $0.58 $2.11 

Specified items reflect intangible amortization expense of $989 million and other net expenses of $125 million associated with restructuring actions, costs associated with acquisitions and other expenses. See page 19 for additional details regarding specified items.
1H22
As
Reported (GAAP)
Specified ItemsAs
Adjusted
Intangible Amortization
$1,019 $(1,019)$ 
Gross Margin
12,213 1,199 13,412 
R&D
1,381 (65)1,316 
SG&A
5,544 (53)5,491 
Other (income) expense, net
(160)(27)(187)
Earnings before taxes
5,228 1,344 6,572 
Taxes on Earnings
763 190 953 
Net Earnings
4,465 1,154 5,619 
Diluted Earnings per Share
$2.51 $0.65 $3.16 

Specified items reflect intangible amortization expense of $1.019 billion and other net expenses of $325 million that includes costs associated with a product recall, acquisitions, and other net expenses. See page 20 for additional details regarding specified items.









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A reconciliation of the second-quarter tax rates for 2023 and 2022 is shown below:
2Q23
($ in millions)Pre-Tax
Income
Taxes on
Earnings
Tax
Rate
As reported (GAAP)$1,636 $261 15.9 %1)
Specified items566 48 
Excluding specified items$2,202 $309 14.0 %
2Q22
($ in millions)Pre-Tax
Income
Taxes on
Earnings
Tax
Rate
As reported (GAAP)$2,352 $334 14.2 %
Specified items621 97 
Excluding specified items$2,973 $431 14.5 %
1)2023 Taxes on Earnings includes the recognition of approximately $40 million of net tax expense as a result of the resolution of various tax positions related to prior years.

A reconciliation of the year-to-date tax rates for 2023 and 2022 is shown below:
1H23
($ in millions)Pre-Tax
Income
Taxes on
Earnings
Tax
Rate
As reported (GAAP)$3,198 $505 15.8 %2)
Specified items1,114 99 
Excluding specified items$4,312 $604 14.0 %
1H22
($ in millions)Pre-Tax
Income
Taxes on
Earnings
Tax
Rate
As reported (GAAP)$5,228 $763 14.6 %3)
Specified items1,344 190 
Excluding specified items$6,572 $953 14.5 %

2)2023 Taxes on Earnings includes the recognition of approximately $62 million of net tax expense as a result of the resolution of various tax positions related to prior years.

3)2022 Taxes on Earnings includes the recognition of approximately $27 million of net tax expense as a result of the resolution of various tax positions related to prior years and approximately $32 million in excess tax benefits associated with share-based compensation.


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Abbott Laboratories and Subsidiaries
Non-GAAP Revenue Reconciliation
Second Quarter and First Half Ended June 30, 2023 and 2022
($ in millions)
(unaudited)
2Q232Q22% Change vs. 2Q22
Non-GAAP
Abbott ReportedImpact
of CSI acquisition (a)
Impact from business exit (b)Adjusted RevenueAbbott ReportedImpact from business exit (b)Adjusted RevenueReportedAdjustedOrganic
Total Company9,978 (43)(29)9,906 11,257 (39)11,218 (11.4)(11.7)(9.2)
U.S.3,758 (39)— 3,719 4,892 — 4,892 (23.2)(24.0)(24.0)
Intl6,220 (4)(29)6,187 6,365 (39)6,326 (2.3)(2.2)2.2 
Total Nutrition2,076 — (29)2,047 1,953 (39)1,914 6.3 6.9 9.9 
U.S.881 — — 881 761 — 761 15.7 15.7 15.7 
Intl1,195 — (29)1,166 1,192 (39)1,153 0.3 1.2 6.1 
Pediatric Nutrition1,024 — (29)995 925 (39)886 10.6 12.2 14.5 
U.S.507 — — 507 413 — 413 22.5 22.5 22.5 
Intl517 — (29)488 512 (39)473 1.1 3.3 7.5 
Total Medical Devices4,295 (43)— 4,252 3,785 — 3,785 13.5 12.3 14.2 
U.S.1,913 (39)— 1,874 1,688 — 1,688 13.3 11.0 11.0 
Intl2,382 (4)— 2,378 2,097 — 2,097 13.6 13.4 16.8 
Vascular715 (43)— 672 653 — 653 9.3 2.7 5.0 
U.S.264 (39)— 225 228 — 228 15.4 (1.9)(1.9)
Intl451 (4)— 447 425 — 425 6.1 5.2 8.7 
1H231H22% Change vs. 1H22
Non-GAAP
Abbott ReportedImpact
of CSI acquisition (a)
Impact from business exit (b)Adjusted RevenueAbbott ReportedImpact from business exit (b)Adjusted RevenueReportedAdjustedOrganic
Total Company19,725 (43)(37)19,645 23,152 (91)23,061 (14.8)(14.8)(11.9)
U.S.7,686 (39)— 7,647 9,829 — 9,829 (21.8)(22.2)(22.2)
Intl12,039 (4)(37)11,998 13,323 (91)13,232 (9.6)(9.3)(4.3)
Total Nutrition4,043 — (37)4,006 3,847 (91)3,756 5.1 6.7 10.1 
U.S.1,693 — — 1,693 1,438 — 1,438 17.7 17.7 17.7 
Intl2,350 — (37)2,313 2,409 (91)2,318 (2.4)(0.1)5.4 
Pediatric Nutrition1,948 — (37)1,911 1,772 (91)1,681 9.9 13.7 16.3 
U.S.966 — — 966 751 — 751 28.6 28.6 28.6 
Intl982 — (37)945 1,021 (91)930 (3.8)1.8 6.4 
Total Medical Devices8,195 (43)— 8,152 7,379 — 7,379 11.0 10.4 13.3 
U.S.3,691 (39)— 3,652 3,233 — 3,233 14.2 12.9 12.9 
Intl4,504 (4)— 4,500 4,146 — 4,146 8.6 8.5 13.7 
Vascular1,332 (43)— 1,289 1,272 — 1,272 4.7 1.3 4.4 
U.S.482 (39)— 443 437 — 437 10.3 1.3 1.3 
Intl850 (4)— 846 835 — 835 1.8 1.3 6.1 

(a) Reflects the impact of the acquisition of Cardiovascular Systems, Inc. (CSI) on April 27, 2023.
(b) Reflects the impact of exiting the pediatric nutrition business in China. This action was initiated in December 2022.

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Page 16 of 20



Abbott Laboratories and Subsidiaries
Details of Specified Items
Second Quarter Ended June 30, 2023
(in millions, except per share data)
(unaudited)

Acquisition or
Divestiture-
related (a)
Restructuring
and Cost
Reduction
Initiatives (b)
Intangible
Amortization
Other (c)Total
Specifieds
Gross Margin$$11 $498 $13 $529 
R&D(8)— (71)(72)
SG&A(17)(2)— (3)(22)
Other (income) expense, net47 — — 10 57 
Earnings before taxes$(15)$$498 $77 566 
Taxes on Earnings (d)48 
Net Earnings$518 
Diluted Earnings per Share$0.30 
The table above provides additional details regarding the specified items described on page 13.

a)Acquisition-related expenses include legal and other costs related to business acquisitions as well as integration costs, which represent incremental costs directly related to integrating acquired businesses. These costs were more than offset by fair value adjustments to contingent consideration related to business acquisitions.
b)Restructuring and cost reduction initiative expenses include severance, outplacement and other direct costs associated with specific restructuring plans and cost reduction initiatives.
c)Other includes incremental costs to comply with the European Union's Medical Device Regulations (MDR) and In Vitro Diagnostics Medical Device Regulations (IVDR) requirements for previously approved products and charges for intangible asset impairments.
d)Reflects the net tax benefit associated with the specified items and tax expense as a result of the resolution of various tax positions related to prior years.



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Abbott Laboratories and Subsidiaries
Details of Specified Items
Second Quarter Ended June 30, 2022
(in millions, except per share data)
(unaudited)

Acquisition or
Divestiture-
related (a)
Restructuring
and Cost
Reduction
Initiatives (b)
Intangible
Amortization
Other (c)Total
Specifieds
Gross Margin$20 $(6)$507 $42 $563 
R&D(5)— — (27)(32)
SG&A(7)— — (7)(14)
Other (income) expense, net(4)— — (8)(12)
Earnings before taxes$36 $(6)$507 $84 621 
Taxes on Earnings (d)97 
Net Earnings$524 
Diluted Earnings per Share$0.29 

The table above provides additional details regarding the specified items described on page 13.
a)Acquisition-related expenses include integration costs, which represent incremental costs directly related to integrating the acquired businesses and include expenditures for the integration of systems, processes and business activities.
b)Restructuring and cost reduction initiative expenses include severance, outplacement, and other direct costs associated with specific restructuring plans and cost reduction initiatives. The Gross Margin amount includes a credit associated with the charges taken in the second quarter of 2021 for a restructuring plan related to Abbott's manufacturing network for COVID-19 diagnostic tests.
c)Other includes costs related to a voluntary recall within the Nutrition segment and incremental costs to comply with the MDR and IVDR regulations for previously approved products.
d)Reflects the net tax benefit associated with the specified items and excess tax benefits associated with share-based compensation.



















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Page 18 of 20



Abbott Laboratories and Subsidiaries
Details of Specified Items
First Half Ended June 30, 2023
(in millions, except per share data)
(unaudited)

Acquisition or
Divestiture-
related (a)
Restructuring
and Cost
Reduction
Initiatives (b)
Intangible
Amortization
Other (c)Total
Specifieds
Gross Margin$12 $32 $989 $16 $1,049 
R&D(12)— (94)(98)
SG&A(21)(6)— (24)
Other (income) expense, net41 — — 16 57 
Earnings before taxes$$30 $989 $91 1,114 
Taxes on Earnings (d)99 
Net Earnings$1,015 
Diluted Earnings per Share$0.58 
The table above provides additional details regarding the specified items described on page 14.

a)Acquisition-related expenses include legal and other costs related to business acquisitions as well as integration costs, which represent incremental costs directly related to integrating acquired businesses. These costs were partially offset by fair value adjustments to contingent consideration related to business acquisitions.
b)Restructuring and cost reduction initiative expenses include severance, outplacement and other direct costs associated with specific restructuring plans and cost reduction initiatives.
c)Other includes incremental costs to comply with the MDR and IVDR regulations for previously approved products and charges for intangible asset impairments.
d)Reflects the net tax benefit associated with the specified items and tax expense as a result of the resolution of various tax positions related to prior years.




















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Page 19 of 20



Abbott Laboratories and Subsidiaries
Details of Specified Items
First Half Ended June 30, 2022
(in millions, except per share data)
(unaudited)

Acquisition or
Divestiture-
related (a)
Restructuring
and Cost
Reduction
Initiatives (b)
Intangible
Amortization
Other (c)Total
Specifieds
Gross Margin$41 $(12)$1,019 $151 $1,199 
R&D(7)(1)— (57)(65)
SG&A(18)— — (35)(53)
Other (income) expense, net(11)— — (16)(27)
Earnings before taxes$77 $(11)$1,019 $259 1,344 
Taxes on Earnings (d)190 
Net Earnings$1,154 
Diluted Earnings per Share$0.65 

The table above provides additional details regarding the specified items described on page 14.
a)Acquisition-related expenses include integration costs, which represent incremental costs directly related to integrating the acquired businesses and include expenditures for the integration of systems, processes and business activities.
b)Restructuring and cost reduction initiative expenses include severance, outplacement, and other direct costs associated with specific restructuring plans and cost reduction initiatives. The Gross Margin amount includes a credit associated with the charges taken in the second quarter of 2021 for a restructuring plan related to Abbott's manufacturing network for COVID-19 diagnostic tests.
c)Other includes charges related to a voluntary recall within the Nutrition segment and incremental costs to comply with the MDR and IVDR regulations for previously approved products.
d)Reflects the net tax benefit associated with the specified items, excess tax benefits associated with share-based compensation and net tax expense as a result of the resolution of various tax positions related to prior years.
###
Page 20 of 20
v3.23.2
Cover
Jul. 20, 2023
Document Information [Line Items]  
Document Type 8-K
Document Period End Date Jul. 20, 2023
Entity Registrant Name ABBOTT LABORATORIES
Entity Incorporation, State or Country Code IL
Entity File Number 1-2189
Entity Tax Identification Number 36-0698440
Entity Address, Address Line One 100 Abbott Park Road
Entity Address, City or Town Abbott Park
Entity Address, State or Province IL
Entity Address, Postal Zip Code 60064-6400
City Area Code 224
Local Phone Number 667-6100
Written Communications false
Soliciting Material false
Pre-commencement Tender Offer false
Pre-commencement Issuer Tender Offer false
Entity Emerging Growth Company false
Entity Central Index Key 0000001800
Amendment Flag false
NYSE CHICAGO, INC.  
Document Information [Line Items]  
Title of 12(b) Security Common Shares, Without Par Value
Trading Symbol ABT
Security Exchange Name CHX
NEW YORK STOCK EXCHANGE, INC.  
Document Information [Line Items]  
Title of 12(b) Security Common Shares, Without Par Value
Trading Symbol ABT
Security Exchange Name NYSE

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