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1、2023 ANNUAL REPORTTABLE OF CONTENTS1 Letter to Shareholders5 Abbott 20236 From Data to Decisions8 Laboratory Diagnostics10 Rapid Diagnostics 12 Vascular14 Electrophysiology16 From Insight to Innovation18 Structural Heart20 Neuromodulation22 Heart Failure Management24 Cardiac Rhythm Management26 From

2、 Engagement to Empowerment28 Medicines30 Nutrition32 Diabetes Care34 The Future in Fast Forward36 Financial ReportThroughout our long history,we have continually reinvented Abbott to meet the needs of every age and stage of a persons life,innovating to create leading-edge technologies that empower i

3、ndividuals to take ever-increasing control over their own health.We believe the best medical products are those that help the most people.With a focus on maximizing broad access and af ordability across our businesses nutrition,medicines,medical devices,and diagnostics were working to help more peop

4、le in more places meet their most urgent healthcare needs.In a constantly evolving environment that requires visionary leadership,we are well-positioned to continue delivering long-term,sustainable growth and shareholder returns.Front Cover:ZULEYMA SANTOSLOS ANGELES,CALIFORNIA,USAHEARTMATE 3Zuleyma

5、relies on Abbotts HeartMate 3 Left Ventricular Assist Device,a mini heart pump for patients in advanced-stage heart failure.DEAR FELLOW SHAREHOLDER:2023 was the year weve been working toward.With all four of our major businesses again delivering consistently strong performance,Abbott accelerated its

6、 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.ROBERT FORD Chairman of the Board and Chief Executive Office

7、rA B B OT T 2023 A N N UA L R E P O R T2$40.1BWORLDWIDE SALESOur diversified business mix delivered another strong yearADJUSTED DILUTED EPS11.6%*$4.44*BASE-BUSINESS ORGANIC SALES GROWTHRESILIENCEThe key to Abbotts successful 2023 was balance.With supply chains and the volume of hospital procedures l

8、argely returned to normal after the disruptions of COVID-19,our base-business growth accelerated from its pre-pandemic rate.The year clearly demonstrated the value of our diversified business strategy.Our broad range of therapeutic areas,products,and technologies gives Abbott a unique and differenti

9、ated view of healthcare,providing us more insights,access,and opportunities.It allows us to see interconnectivity across the spectrum of healthcare,which gives us greater ability to see around corners and anticipate developing trends and needs.And the breadth and depth of our product portfolio gives

10、 Abbott both defensive strength with the ability to balance challenges in one business with overperformance in another,and offensive strength with more ways to win.At the root of Abbotts resilience is our culture,which is every bit as real an asset as the more tangible ones.Over its generations of s

11、uccess,Abbott has thrived through all manner of challenges from our business environment.That experience has tempered us as an organization.We know how to meet such situations because weve done so time and again,and weve built the company accordingly for long-term durability.Financial PerformanceInv

12、estments made at the peak of COVID-19 testing sales have positioned us for sustainable growth,making us stronger today than at the beginning of the pandemic.Our balanced success in 2023 led to excellent financial results for the year,with both sales and earnings exceeding the expectations we shared

13、at the beginning of the year.Sales were$40.1 billion,which reflects an increase of 11.6%on an organic basis for the base business.*Adjusted diluted earnings per share were$4.44*,above the midpoint of our original guidance range.In December we announced a dividend increase of 7.8 percent for 2024.Abb

14、ott recently paid its 400th consecutive quarterly dividend,completing a full century of uninterrupted returns to shareholders.And our dividends have risen in each of the last 52 years,earning Abbott membership in the exclusive ranks of Dividend Kings.Were focused on returning our gross margin to his

15、toric levels to allow us to increase investment in our new-product pipeline,in building our market presence,and in the broad range of opportunities before us.CREATIVITYResilience requires the ability to adapt,adjust,and evolve at speed in other words,creativity.Abbott people bring creative problem s

16、olving to every aspect of our operations;but our creative energy is most focused and systematized in our innovation of new products and technologies.The results here have been outstanding.Base-business growth continued in 2023*On a GAAP basis,full-year 2023 Abbott sales decreased 8.1%*Full-year 2023

17、 GAAP diluted EPS was$3.26 For full financial data and reconciliation of non-GAAP measures,please see Abbotts 2023 earnings releases at A B B OT T 2023 A N N UA L R E P O R T3Pipeline ProductivityIn 2023,we continued to introduce a robust stream of important new healthcare products.These included:Al

18、inity TBI,a laboratory test for concussion Alinity h,an integrated hematology system for advanced testing of complete blood counts Alinity m high risk HPV,a new test for HPV detection and for use in routine cervical cancer screening Assert-IQ,a Bluetooth-enabled insertable cardiac monitor that provi

19、des industry-leading accuracy for the long-term monitoring of heart rhythms Aveir DR,the worlds fi rst dual chamber,leadless pacemaker,a breakthrough in pacing technology The cardiovascular medicines RefSavin India and Omacor in China Eterna SCS,the smallest implantable,rechargeable spinal cord stim

20、ulator on the market GLP systems Track,our innovative total laboratory automation solution,which was launched in the U.S.Lingo,our new consumer biowearable device The expansion of our position in biosimilar medicines through the launch of Rytuzeq in Colombia and Central America for treatment of canc

21、ers of the white blood system Navitor,our next-generation transcatheter aortic valve implantation(TAVI)system to treat aortic stenosis PediaSure 10+,Abbotts fi rst nutrition shake developed specifi cally for children aged 10-15 years PROTALITY,a nutritional designed to help the growing number of adu

22、lts interested in maintaining muscle mass TactiFlex,our new ablation catheter to help treat abnormal heart rhythmsPutting AI to Work 2023 was,of course,the year that generative artifi cial intelligence exploded into the public consciousness with the arrival of compelling,popular language and visual

23、tools.Forms of AI and machine learning have been employed in healthcare for some time;but 2023 marked the crossing of an important threshold in the sophistication and perception of the technology as well as the scope of its consumer potential.Abbott is already well versed in AI and employs it in mul

24、tiple applications.For instance,Ultreon,our newest OCT(optical coherence tomography)imaging system,uses AI to automatically analyze key patient metrics to help optimize procedures.And weve used our vast body of clinical trial data on our XIENCEdrug-eluting stents to create machine-learning models fo

25、r individual risk prediction.As generative AI tools rapidly evolve in capability,were forming teams across our businesses to understand the ways in which they can make a positive diff erence in our work.Weve identifi ed three major categories of use for artifi cial intelligence that we believe will

26、have meaningful impact on healthcare;Abbott has expertise and existing positions in all three:In diagnosis,generative AI will allow us to identify conditions faster,earlier,and more accurately.The analysis of healthcares huge data sets can guide truly personalized care moving from reporting on popul

27、ations to giving physicians actionable insights for individuals.Well see AI-based systems helping to review and analyze medical histories and patient records.And the data sets they generate will be processed to identify patterns that help predict and reduce serious health issues,particularly through

28、 earlier intervention.PIPELINE HIGHLIGHTSNavitorTranscatheter Aortic Valve ReplacementTriClipTranscatheter Tricuspid Valve RepairPROTALITYNutrition Shake for Muscle Massi-STAT TBIHandheld Test for ConcussionAveir DRDual-Chamber Leadless PacemakerLingoConsumer BiowearableA B B OT T 2023 A N N UA L R

29、E P O R T4A B B OT T 2023 A N N UA L R E P O R T4 In treatment,it will have the same kind of impact on the discovery of new therapeutics from med-tech to pharma to nutrition making the process vastly more effi cient.Generative AI can more rapidly explore hypotheses,examine alternatives,and play out

30、scenarios,resulting in more and better products,faster and more eff ectively.It can help us build models to predict which patients may have better outcomes with one therapy versus another,or tailor treatment to a patients personal anatomy,disease,and characteristics.And it will continue to advance h

31、ow we conduct clinical studies from pre-trial planning,to participant identifi cation and management,to trial surveillance helping us increase diversity in clinical trials,which will improve outcomes and increase health equity.And it will help us to signifi cantly improve consumer empowerment.AI wil

32、l not only allow us to engage more deeply with the people who use our products,but it will also let them do so with their caregivers.This can improve their adherence to treatment,resulting in better outcomes.And,most importantly,it can provide consumers greater power in an area where theyve traditio

33、nally had too little,allowing users to personalize and manage their health and care.We expect generative AI to help us accelerate our work to digitize,decentralize,and democratize healthcare,enabling our customers to receive the care they need,when and where they need it,and allowing Abbott to help

34、more people than ever before.COMMITMENTThe reason Abbott has been so successful for so long is clear:our purpose as a company inspiresextraordinary commitment from our colleagues around the world.Abbott people care that their work means so much to those we serve.Our products help people live fuller

35、lives.That matters to us,deeply.Our driving ambition today is to help three billion people with Abbott products and services every year by 2030.Its an ambitious goal the kind that inspires people to achieve more than they thought they could.Reaching one-third of the people on the planet starts with

36、the waywe create our products.We aim to expand access to healthcare by making it easier to use,more available,and more aff ordable.And this customer-centric perspective extends to every part of the company.Weve adopted design principles to build this thinking into every stage of the product process,

37、from invention,to supply chain,to production.And people driven by a noble purpose supported and propelled by a culture of achievement can accomplish great things.Healthcare not only inspires that kind of greatness,it demands it.At Abbott,we know that our products arent just products,and our work is

38、not just a job.For 135 years,weve had the privilege of purpose.Thats a legacy we mean to preserve,a standard we intend to meet,and a commitment you can count on.Abbott Proud,ROBERT B.FORD Chairman of the Board and Chief Executive Offi cerMarch 4,2024Consistently strong shareholder returnsallowing Ab

39、bott to help more people Abbott Proud,ROBERT B.FORD 100CONSECUTIVE YEARS OF DIVIDENDS PAID50+CONSECUTIVE YEARS OF RISING DIVIDENDS80%DIVIDEND INCREASE SINCE 2018A B B OT T 2023 A N N UA L R E P O R T5 Abbott 2023With strong organic growth across our companys base businesses,Abbotts performance is pr

40、oof of the power of our broadly diversifi ed 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.A B B OT T 2023 A N N UA L R E P O R TFrom data to decisionsTHE F

41、UTURE OF HEALTHCAREAbbott technologies give physicians data and insights to enable faster and more accurate diagnosis.Were exploring how we can combine artificial intelligence with Abbott diagnostics and technology leadership to transform our impact on human health.INSIGHTS IN REAL TIMEUsing AI and

42、machine learning to build and analyze massive data sets,Abbott can help physicians quickly identify and implement the optimal approach to care,streamlining treatment and improving outcomes.PREDICTIVE POTENTIALWe envision a future in which smaller,smarter devices will generate data that can be used t

43、o identify patterns,helping to predict and reduce serious health issues through earlier interventions.TRANSFORMATIVE IMPACTThe integration of multiple data streams to both patients and providers will give them the opportunity to benefit from the data they produce from their devices,and will help Abb

44、ott understand how that information can be used to improve care.6A B B OT T 2023 A N N UA L R E P O R T7Ultreon,Abbotts fi rst-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

45、 of AI to enhance the precision of physicians decision-making during coronary stenting procedures.8A B B OT T 2023 A N N UA L R E P O R TAbbott off ers customized,scalable solutions to help laboratories improve throughput,accuracy,and productivity in diagnostic labs.Abbott is a market leader in diag

46、nostic tests,instruments,and informatics systems.Our products deliver crucial information to help guide decision making for hundreds of health conditions from heart attacks to blood disorders to infectious diseases and cancers.Our Alinity portfolio of harmonized diagnostic systems includes the Alini

47、ty ci series,which integrates clinical chemistry and immunoassay testing to help maximize its operational effi ciency.In 2023,the Alinity i test menu had a notable expansion with U.S.clearance for the fi rst commercially available lab-based blood test to help evaluate concussion.We also launched the

48、 Alinity h series,for advanced testing of patients complete blood counts.AlinIQ,Abbotts suite of digital health solutions,helps labs uncover intelligent insights from the data they generate and discover greater operational productivity with existing resources.And Abbott remains the global leader in

49、systems and tests used to screen donated blood.Following a pandemic-infl uenced slowdown,our blood-screening business delivered solid growth in 2023.Today,Abbott systems and tests screen more than 50%of the worlds blood and plasma supply.Alinity s,which was purpose-built for blood and plasma screeni

50、ng,allows laboratory staff to process more samples with less eff ort,greater consistency,and increased control,leading to a more productive blood-and plasma-screening process.ALINITY SPurpose-built for blood and plasma screening,this transformational innovation helps labs achieve greater operational

51、 effi ciency.Laboratory Diagnostics9A B B OT T 2023 A N N UA L R E P O R TABBOTT IS A MARKET LEADER IN DIAGNOSTIC TESTS,INSTRUMENTS,AND INFORMATICS SYSTEMS.SIES HEALTHBOGOT,COLOMBIAAbbott Abbott AlinityAlinity systems have been systems have been key to the effi cient expansion of core key to the eff

52、i cient expansion of core laboratory diagnostics services at laboratory diagnostics services at SIES Salud Health System,a leading SIES Salud Health System,a leading healthcare provider in Colombia.healthcare provider in Colombia.10A B B OT T 2023 A N N UA L R E P O R TMARKET-LEADING TESTS FOR HIV A

53、ND RESPIRATORY ILLNESSLEADING GLOBAL PROVIDER OF RAPID,POINT-OF-CARE TESTSAbbott is an industry leader in at-home and point-of-care testing solutions for both consumers and healthcare providers.Abbotts BinaxNOW and Panbio COVID-19 tests have been used almost 3 billion times around the world since th

54、eir development in 2020.Another rapid test,our Panbio HIV Self Test,empowers people to proactively know their HIV status and live fuller lives through earlier diagnosis and treatment.Our i-STAT TBI plasma test,the fi rst rapid handheld traumatic brain injury blood test,will help clinicians assess in

55、dividuals with suspected mild TBIs,including concussions.Test results are available within 15 minutes after plasma is placed in the test cartridge.*In our point-of-care testing portfolio,the installed base of our ID NOW benchtop analyzer has increased more than fi vefold since 2019,accelerating Abbo

56、tts strategy to decentralize testing.We are working to expand the test menu for this system to increase utilization beyond COVID-19 and fl u testing.This portfolio also includes Piccolo Express,the only portable diagnostic analyzer to off er a full complement of CLIA-waived blood chemistry tests at

57、the point of care;Afi nion 2,a compact,rapid,multi-assay analyzer;and the Cholestech LDX analyzer,which empowers healthcare professionals and patients with a lab-accurate complete lipid profi le and glucose level in just fi ve minutes per test cassette.Abbott is working to ensure diagnostic testing

58、is available wherever people need care.Rapid Diagnostics*i-STAT TBI plasma test is not intended for use as a point-of-care device.11PANBIO HIV SELF TESTSimple-to-use home test lets people know their HIV status in just 15 minutes.LUCAS RANIELSO PAULO,BRAZILPANBIO HIVLucas,an infl uencer and activist,

59、works to help others better understand what its like to live a full life while HIV-positive.In his outreach work,he recommends that people regularly check their HIV status with Abbotts Panbio HIV.ID NOWOur benchtop molecular analyzer off ers reliable,rapid results,giving healthcare professionals inf

60、ormation they need to make faster,more eff ective treatment decisions.12In addition to our broad portfolio of market-leading stents,Abbott provides diagnostic and imaging devices,cutting-edge thrombectomy and atherectomy systems,and a full line of vessel-closure devices.Our OPTIS Imaging Systems use

61、 optical coherence tomography to deliver hundreds of micron-level resolution images of the artery.These images are then analyzed by our AI-powered Ultreon 2.0 imaging and physiology software,which provides insights to help doctors better assess arterial blockages and optimize treatment decisions.Our

62、 XIENCE family of stents includes our next-generation XIENCE Skypoint,which allows physicians to treat larger blood vessels and longer lesions.Abbott is working to expand this portfolio with the Esprit BTK(below the knee)everolimus eluting resorbable scaff old system,which is currently being evaluat

63、ed by the FDA as a treatment for people with chronic limb-threatening ischemia.Our JETi hydrodynamic thrombectomy system uses a uniquely positioned high-pressure saline jet to fragment clots within the safety of the catheter tip while reducing catheter clogs.In April 2023,Abbott completed our acquis

64、ition of Cardiovascular Systems,Inc.,adding CSIs leading atherectomy system,Diamondback 360,which prepares vessels for angioplasty or stenting to restore blood fl ow.A B B OT T 2023 A N N UA L R E P O R TVascularExpanding our comprehensive portfolio of devices to optimize vascular interventions.EUNI

65、CE GIVENSFORT WORTH,TEXAS,USAESPRIT BTKEunice participated in a clinical trial for Abbotts investigational Esprit BTK bioresorbable scaff old system,which is currently being evaluated by the U.S.FDA as a treatment for people with chronic limb-threatening ischemia.*CAUTION:Investigational device.Limi

66、ted by Federal(U.S.)law to investigational use only.A B B OT T 2023 A N N UA L R E P O R T13ULTREONVASCULAR IMAGING SYSTEMUltreon Software is our new-generation intravascular imaging and coronary physiology software to guide percutaneous coronary intervention.ESPRIT BTKAbbotts investigational drug-e

67、luting Esprit BTK resorbable scaff old is made of dissolving material that is designed to disappear over time after it has opened a clogged artery.DIAMONDBACK 360Atherectomy system to prepare vessels for stenting or angioplasty14A growing portfolio of cutting-edge technologies for the precision trea

68、tment of atrial fi brillation.ElectrophysiologyA B B OT T 2023 A N N UA L R E P O R TDR.KENT NILSSON AND DR.DANIEL HAITHCOCKATHENS,GEORGIA,USADr.Nilsson(left)and Dr.Haithcock(right)rely on Abbotts EnSite X mapping system to guide them in delivering cardiac ablation therapy to their patients.15A B B

69、OT T 2023 A N N UA L R E P O R TENSITE X SYSTEMNext-generation 3D mapping platformTACTIFLEX ABLATION CATHETERFirst-of-its-kind catheter with unique fl exible tipAbbott has helped fuel the strong growth of our Electrophysiology business with innovative additions to our portfolio of devices that analy

70、ze and treat abnormal heart rhythms.Atrial fi brillation(AFib)is the most common type of arrhythmia,or irregular heartbeat,impacting more than 37 million people,a number that is expected to grow to more than 60 million by 2050.Abbott devices,from implantable monitors to sophisticated mapping systems

71、,generate complex data sets that help doctors more eff ectively treat this condition.Our Advisor HD Mapping Catheter uses a fi rst-of-its-kind electrode confi guration to create more-highly detailed maps of the heart.Our best-in-class cardiac-mapping system,EnSite X,allows doctors to diagnose a wide

72、 range of arrhythmias.EnSite X features a screen that displays 3D images of the heart and its activity in real time,helping a doctor fi nd the specifi c tissue thats causing the heart to beat irregularly.Our TactiFlex ablation catheter,Sensor Enabled,is the worlds fi rst ablation catheter designed w

73、ith a unique fl exible electrode tip and contact-force sensing.A B B OT T 2023 A N N UA L R E P O R TTHE FUTURE OF HEALTHCAREAbbott uses leading-edge tools to streamline and accelerate clinical research and product development,helping us expand our broad portfolio of new,life-changing solutions.BROA

74、DER BUSINESS,DEEPER INSIGHTSAs one of the most diverse companies in healthcare,Abbott has a unique perspective that gives us insights into the health challenges people face at every stage of life.This cross-disciplinary knowledge informs our development process,helping us create products to transfor

75、m the standard of care.ACCELERATING THE ABBOTT PIPELINEAbbotts global presence and extensive 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 LAUNCHESAbbotts demon

76、strated commitment to outstanding commercial execution helps ensure that the benefi ts of our innovations are available more quickly,to more people,in more places.16From insight to innovationA B B OT T 2023 A N N UA L R E P O R T17NeuroSphere Virtual NeuroSphere Virtual ClinicClinic connects doctors

77、 connects doctors remotely with their remotely with their patients to interact patients to interact and make real-time and make real-time adjustments to adjustments to Abbott devices that Abbott devices that treat chronic pain or treat chronic pain or movement disorders.movement disorders.A B B OT T

78、 2023 A N N UA L R E P O R TStructural HeartImproving outcomes with a broad portfolio of innovative,minimally invasive devices.18TRICLIP G4 SYSTEMNext-generation transcatheter edge-to-edge repair system for leaky tricuspid valves.NAVITOR TAVI SYSTEMTranscatheter aortic valve implantation system deli

79、vers precise,stable deployment and excellent procedural outcomes,and is designed for lifetime patient management.AMPLATZER AMULET Left-atrial-appendage occluder is designed to reduce the risk of ischemic stroke caused by atrial fi brillation.19JAVIER VILLARROYABOADILLA DEL MONTE,SPAINTRICLIP TEERTo

80、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 Ab

81、botts TriClip.Abbott has the most comprehensive Structural Heart treatment portfolio in the industry.Our broad array of minimally invasive treatment options is supported by data showing that our devices are safe,effective,durable,and deliver the best clinical outcomes for patients.TriClip,approved i

82、n more than 50 countries,*is a first-of-its-kind minimally invasive transcatheter edge-to-edge repair(TEER)device specifically designed to treat tricuspid regurgitation,or a leaky tricuspid valve.Our MitraClip is the worlds first minimally invasive TEER therapy for both primary and secondary mitral

83、regurgitation.Our transcatheter aortic valve implantation(TAVI)and surgical valve portfolios are designed to maximize key clinical outcomes and the possibilities for patient lifetime management of their heart-valve disease.Navitor,Abbotts latest-generation TAVI system,was approved by the FDA in Janu

84、ary 2023.It features advancements to reduce the risk of blood leakage around the implant.The Epic Max aortic stented tissue valve is designed to help patients with more complex cases of aortic regurgitation or stenosis who cannot take blood-thinning medications.A B B OT T 2023 A N N UA L R E P O R T

85、*Investigational device in the U.S.20A B B OT T 2023 A N N UA L R E P O R TNeuromodulationAdvanced technologies for improving care for movement disorders and chronic pain.JILL SOBULENEW YORK,NEW YORK,USA INFINITY DBSJill,a successful singer-songwriter,had lived with essential tremor for years.Then,i

86、n 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 Abbotts Infi nity DBS(deep brain stimulation)system,calming her tremor and restoring her ability to pl

87、ay.ETERNA SCS SYSTEM With Xtend energy technology and BurstDRstimulationINFINITY DBS SYSTEMDeep brain stimulation system for people with Parkinsons or essential tremor.A B B OT T 2023 A N N UA L R E P O R T21Abbott is a global leader in the development of chronic-pain therapy solutions.Our unique po

88、rtfolio includes radiofrequency ablation,spinal cord stimulation(SCS)technologies,including BurstDR stimulation,and dorsal root ganglion(DRG)stimulation for the treatment of chronic pain.In 2023,Abbott expanded its Pain Management portfolio with the launch of Eterna,the worlds smallest implantable,r

89、echargeable SCS system.Eterna is designed to optimize the charging experience,requiring as few as fi ve recharges per year under standard use from a wireless charger.For movement disorders,such as Parkinsons disease and essential tremor,Abbotts Infi nity DBS system employs a directional lead thats c

90、apable of sending energy toward all major therapeutic targets for both conditions while reducing stimulation to areas that may create side eff ects.Our fi rst-of-its-kind NeuroSphere Virtual Clinic lets doctors remotely reprogram a patients implant via a secure video chat integrated into our NeuroSp

91、heredigital health ecosystem.For our pain-management devices,Abbotts NeuroSphere myPath connected-care app stores data that helps people objectively evaluate SCS or DRG therapy as theyre trying a new device.With myPath,doctors have better visibility to patients collected outcomes,helping them have b

92、etter informed discussions as they craft treatment plans.A B B OT T 2023 A N N UA L R E P O R T22Heart Failure ManagementSolutions for every stage of heart failure,from the earliest to the most advanced.CARDIOMEMSHF SYSTEMAbbotts paper-clip-sized device can alert doctors to worsening heart failure b

93、efore symptoms arise.23HEARTMATE 3ZULEYMA SANTOSLOS ANGELES,CALIFORNIA,USAHEARTMATE 3Because of a naturally high antibody count,theres a higher risk that Zuleymas body would reject a transplanted heart.Thats why her doctors chose to implant Abbotts HeartMate 3 LVAD.Thanks to its constant assistance,

94、Zuleyma can get back to her daily activities and be the mom she wants to be for her kids.Abbotts industry-leading portfolio of solutions includes diagnostics,devices,data,and analytics that can help physicians and hospitals manage heart failure more holistically for the nearly 26 million people arou

95、nd the world who suff er from it.Our CardioMEMS HF System is a pulmonary artery pressure monitoring system that provides early detection of worsening heart failure.By continuously generating data that can be shared with the patients care team,CardioMEMS can help prevent worsening heart failure,which

96、 lowers mortality rates and improves quality of life.Our cardiac resynchronization therapy is a proven clinical treatment for heart failure management.These devices can communicate with Abbotts Merlinhome system to facilitate effi cient remote care management of patients,complementing or replacing i

97、n-clinic visits with remote patient transmissions.Our HeartMate 3 is a left-ventricular assist device(LVAD)a mini heart pump for patients in advanced-stage heart failure.HeartMate 3 uses Full MagLevfl ow technology,which suspends the pump rotor with magnetic force,reducing trauma to the blood as it

98、passes through the pump.Our CentriMag circulatory support system was a life-saving option for thousands of patients who required respiratory and circulatory support during the COVID-19 pandemic.In 2023,CentriMag was approved by the FDA for longer-term life support.CENTRIMAG CIRCULATORY SUPPORT SYSTE

99、MBlood-pumping system used to support patients with acute heart and lung failure.24A B B OT T 2023 A N N UA L R E P O R TCardiac Rhythm ManagementBuilding on our leadership with innovative new solutions for managing abnormal heart rhythms.AVEIR DRWorlds first dual-chamber leadless pacemaker.FOR POSI

100、TION ONLY25A B B OT T 2023 A N N UA L R E P O R TAbbotts Cardiac Rhythm Management business is well positioned for accelerated growth,thanks to the introduction of our AVEIR DR the worlds fi rst dual-chamber,leadless pacemaker system.The system consists of two pacers,each smaller than a AAA battery,

101、that are implanted via a minimally invasive procedure,using the devices unique mapping capability to assess their correct positioning prior to placement.The devices communicate with each other through our proprietary i2i system.AVEIR is also designed to be easily retrievable,should the patients ther

102、apy needs change.Our implantable cardioverter defi brillators(ICD)are designed to continuously monitor patients heart rhythms and detect irregular heartbeats,delivering electrical signals and controlled shocks to restore a normal heart rhythm when necessary.These devices are setting the standard for

103、 patient care through new algorithms and technology intended to improve patient safety and therapy assurance.This portfolio includes the Ellipse ICD,which off ers non-invasive programming options and wireless remote monitoring with our Merlinhome transmitter;and Gallant ICD,which combines built-in s

104、martphone connectivity with intuitive programming to help doctors meet patients changing needs.SARA WYKURZLIBERTYVILLE,ILLINOIS,USAAVEIR DRSara 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 d

105、rop of heart rate and blood pressure.A B B OT T 2023 A N N UA L R E P O R TFrom engagement to empowermentTHE FUTURE OF HEALTHCAREAt Abbott,its always been about empowering people to live their fullest lives.Abbotts portfolio is fi lled with products and solutions that let people engage more fully wi

106、th their care,taking an active role in maintaining their health.ACCELERATING THE PERSONALIZATION OF HEALTHCAREAbbott is revolutionizing health with the most personal technologies and empowering people with the data and knowledge they need to help them live longer and better.PUTTING CONSUMERS IN CONT

107、ROLWith continuous data,people can understand how choices impact their health,helping them take better control of their conditions.HELPING HEALTHY PEOPLE STAY THAT WAYOur connected-care and digital-health tools,along with our portfolio of targeted nutrition products and medicines,are helping people

108、make better,faster,and more complete decisions about their health in ways that fi t easily into their lives.26A B B OT T 2023 A N N UA L R E P O R T27Christos Gkipatas Munich,GermanyJETi Thrombectomy SystemAfter his doctors used Abbotts JETithrombectomy system to remove blood clots in his legs,Chris

109、 was able to walk without pain for the fi rst time in months.A B B OT T 2023 A N N UA L R E P O R T28MedicinesA growing array of medicines and therapies to transform the quality of healthcare in emerging markets worldwide.Every day,more than 62 million people around the world use Abbott medicines.Ou

110、r targeted product portfolios span multiple therapeutic areas,with key off erings in gastroenterology,womens health,cardiometabolic,pain management/central nervous system,and respiratory.By focusing our medicines business solely in emerging markets,Abbott is able to develop a detailed understanding

111、of the unique health challenges and needs of local communities.We build on that knowledge,bringing our broad and deep scientifi c expertise to improve trusted medicines,diff erentiating ourselves from pure generic competitors through our exacting quality standards,reliable supply chain,broad product

112、 range,deep understanding of our customers needs,and patient-centered innovation.In 2023,we made great progress in broadening access to health in emerging markets by expanding our collaboration with biotech leader mAbxience Holdings to commercialize several biosimilar molecules,with the goal of brin

113、ging these newer therapies for oncology,womens health,and respiratory diseases to more people,in more places.We also off er services that help people better manage their health.For example,our a:care initiative off ers digital solutions,developed with behavioral science and AI at its core,to build h

114、ealthy habits,giving patients and healthcare providers tools,tips,and resources.These tools can help redefi ne how people manage their health,improving interactions between patients and healthcare professionals,and helping reduce healthcare costs.A representative sample of our broad portfolio of lea

115、ding medicines in emerging markets.29A B B OT T 2023 A N N UA L R E P O R TWANNAPAPORN APIVATMONGKOLBANGKOK,THAILANDDUPHASTONDuphaston 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

116、 through in vitro fertilization with the help of Duphaston.MABXIENCE BIOSIMILARS PARTNERSHIPExpanded partnership brings the benefi ts of biologic medicines to a wider pool of patients.30A B B OT T 2023 A N N UA L R E P O R TNutritionSetting the standard for science-based nutrition to support the gro

117、wth,health,and wellness of people at every stage of life.For almost 100 years,Abbott has been a leader in complete and supplemental nutrition.Our adult nutritional products fi ll nutrition gaps nourishing patients who are not able to eat adequately,or supporting active adults in leading an overall h

118、ealthy lifestyle.We helped create this category in 1973,with the launch of Ensure.Today,Ensureis the No.1 doctor-recommended brand of nutritional shake,encompassing a full line that includes pre-and post-surgery shakes specifi cally formulated to support recovery.Were expanding our portfolio with PR

119、OTALITY,which is designed to support thegrowing number of adults interested in pursuing weight loss while maintaining muscle mass.Our specialty nutrition brands include Glucernaproducts,made with Carbsteady,a unique blend of slow-release carbohydrates,that helps minimize blood sugar spikes for peopl

120、e with diabetes;Nepro,formulated to help replace protein lost during dialysis treatments;and Juven,which is formulated to support wound healing.The foundation of our pediatric nutrition portfolio is our market-leading Similac line of infant formulas.Similac 360 Total Care contains an exclusive prebi

121、otic blend that makes these formulas closer than ever to breast milk.Weve also developed a variety of amino-acid-based formulas for children who suff er from food allergies,gastrointestinal disorders,and inborn errors of metabolism.ADULT AND PEDIATRIC NUTRITIONBroad-based off ering for every age and

122、 stage of life.A B B OT T 2023 A N N UA L R E P O R TPediaSure 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 fl uids and

123、electrolytes theyve lost due to mild-to-moderate dehydration.GLUCERNANutritional shake designed to help manage blood sugar.VICKY RAOSEREMBAN,MALAYSIAGLUCERNAWhen 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,ea

124、ting right,and supplementing his diet with Glucerna.3132A B B OT T 2023 A N N UA L R E P O R TDiabetes CareMaking diabetes management easier and more accessible.Our commitment to continuous innovation has made Abbott the global leader in continuous glucose monitoring.1 We designed our FreeStyle Libr

125、e portfolio with access and aff ordability in mind from Day One,and today its the worlds most aff ordable and widely used continuous glucose monitoring system,2 with more than 5 million regular users across more than 60 countries.3Our fl agship product,the FreeStyle Libre 3 system,features the world

126、s smallest,thinnest,and most discreet sensor.4 Real-world and clinical data show that this technology helps people with diabetes improve their glucose control,lower their HbA1Cs(a measure of glucose levels over time),decrease diabetes-related hospital admissions,and improve their quality of life.5We

127、re working to develop and launch the fi rst automated insulin delivery(AID)system powered by the FreeStyle Libre 3 sensor.We are integrating data from connected insulin pens with FreeStyle LibreLink6 and LibreView,7 letting patients,caregivers,and healthcare professionals view glucose and insulin da

128、ta together to help them make better-informed treatment decisions.And in 2023,we acquired Bigfoot Biomedical,adding the Unity diabetes management system to our diabetes care off ering.Unity features smart caps for disposable insulin-injector pens that integrate with our FreeStyletechnology to provid

129、e dose recommendations for people with diabetes who use multiple daily injections of insulin.33A B B OT T 2023 A N N UA L R E P O R TDOUG MASIUKBRECKENRIDGE,COLORADO,USAFREESTYLE LIBRE 3An outdoor sports enthusiast and an avid runner,Doug was the fi rst person with type 1 diabetes to run all the way

130、 across the United States.FREESTYLE LIBRE 3CONTINUOUS GLUCOSE MONITORING SYSTEMMore than 5 million people in 60 countries rely on our FreeStyle Libre portfolio to help them manage their diabetes.5 5million users34A B B OT T 2023 A N N UA L R E P O R TWorld-class marathoner Eliud Kipchoge has relied

131、on Abbotts glucose sport biosensors to give him continuous insights into his bodys fuel levels as he trains.35A B B OT T 2023 A N N UA L R E P O R TAbbott is leveraging decades of leadership in glucose monitoring,moving beyond diabetes to create the future of biowearables with Lingo,its new device t

132、hat helps users understand the unique languages of their bodies.The future in fast forwardEmerging 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 t

133、o lead the way.362023 FINANCIAL REPORT37 Consolidated Statement of Earnings38 Consolidated Statement of Comprehensive Income39 Consolidated Statement of Cash Flows40 Consolidated Balance Sheet42 Consolidated Statement of Shareholders Investment 43 Notes to Consolidated Financial Statements62 Managem

134、ent Report on Internal Control Over Financial Reporting62 Report of Independent Registered Public Accounting Firm64 Report of Independent Registered Public Accounting Firm65 Financial Instruments and Risk Management66 Financial Review79 Performance Graph80 Summary of Selected Financial Data81 Direct

135、ors and Corporate Officers82 Shareholder and Corporate InformationA B B OT T 2023 A N N UA L R E P O R T37A B B OT T 2023 A N N UA L R E P O R TYear Ended December 31202320222021Net Sales$40,109$43,653$43,075Cost of products sold,excluding amortization of intangible assets17,97519,14218,537Amortizat

136、ion of intangible assets1,9662,0132,047Research and development2,7412,8882,742Selling,general and administrative10,94911,24811,324Total Operating Cost and Expenses33,63135,29134,650Operating Earnings6,4788,3628,425Interest expense637558533Interest income(385)(183)(43)Net foreign exchange(gain)loss41

137、21Other(income)expense,net(479)(321)(277)Earnings before Taxes6,6648,3068,211Taxes on Earnings9411,3731,140Net Earnings$5,723$6,933$7,071Basic Earnings Per Common Share$3.28$3.94$3.97Diluted Earnings Per Common Share$3.26$3.91$3.94Average Number of Common Shares Outstanding Used for Basic Earnings P

138、er Common Share1,7401,7531,775Dilutive Common Stock Options91114Average Number of Common Shares Outstanding Plus Dilutive Common Stock Options1,7491,7641,789Outstanding Common Stock Options Having No Dilutive Effect53The accompanying notes to consolidated financial statements are an integral part of

139、 this statement.CONSOLIDATED STATEMENT OF EARNINGS(in millions except per share data)38A B B OT T 2023 A N N UA L R E P O R TCONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME(in millions)Year Ended December 31202320222021Net Earnings$5,723$6,933$7,071Foreign currency translation gain(loss)adjustments22

140、9(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 20211171,1771,201Net gains(losses)on derivative instruments designated as cash flow hedges,net of ta

141、xes of$(66)in 2023,$11 in 2022 and$63 in 2021(134)40351Other Comprehensive Income(Loss)212323572Comprehensive Income$5,935$7,256$7,643Supplemental Accumulated Other Comprehensive Income(Loss)Information,net of tax as of December 31:Cumulative foreign currency translation(loss)adjustments$(6,504)$(6,

142、733)$(5,839)Net actuarial(losses)and prior service(cost)and credits(1,376)(1,493)(2,670)Cumulative gains(losses)on derivative instruments designated as cash flow hedges41175135Accumulated other comprehensive income(loss)$(7,839)$(8,051)$(8,374)The accompanying notes to consolidated financial stateme

143、nts are an integral part of this statement.39A B B OT T 2023 A N N UA L R E P O R TCONSOLIDATED STATEMENT OF CASH FLOWS(in millions)Year Ended December 31202320222021Cash Flow From(Used in)Operating Activities:Net earnings$5,723$6,933$7,071Adjustments to reconcile earnings to net cash from operating

144、 activities Depreciation1,2771,2541,491Amortization of intangible assets1,9662,0132,047Share-based compensation644685640Investing and financing losses,net12621555Trade receivables(356)(68)(383)Inventories(232)(1,413)(456)Prepaid expenses and other assets(542)(75)(312)Trade accounts payable and other

145、 liabilities(760)4201,288Income taxes(585)(383)(908)Net Cash From Operating Activities7,2619,58110,533Cash 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 busines

146、s dispositions4048134Purchases of investment securities(159)(185)(173)Proceeds from sales of investment securities4315277Other222226Net 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 a

147、nd other2147(204)Proceeds from issuance of long-term debt and debt with maturities over 3 months274Repayments 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 exercised167167255Dividends paid(3,556)(3,3

148、09)(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)832,961Cash and Cash Equivalents,Beginning of Year9,8829,7996,838Cash and Cash Equivalents,End of

149、 Year$6,896$9,882$9,799Supplemental Cash Flow Information:Income taxes paid$1,475$1,864$1,941Interest paid662563544The accompanying notes to consolidated financial statements are an integral part of this statement40A B B OT T 2023 A N N UA L R E P O R TDecember 3120232022AssetsCurrent assets:Cash an

150、d cash equivalents$6,896$9,882Investments,primarily bank time deposits and U.S.treasury bills383288Trade receivables,less allowances of 2023:$444;2022:$5006,5656,218Inventories:Finished products3,9463,805Work in process807680Materials1,8171,688Total inventories6,5706,173Other prepaid expenses and re

151、ceivables2,2562,663Total current assets22,67025,224Investments799766Property and equipment,at cost:Land529511Buildings4,1614,053Equipment15,17914,164Construction in progress2,0641,48421,93320,212Less:accumulated depreciation and amortization11,77911,050Net property and equipment10,1549,162Intangible

152、 assets,net of amortization8,81510,454Goodwill23,67922,799Deferred income taxes and other assets7,0976,033$73,214$74,438The accompanying notes to consolidated financial statements are an integral part of this statement.CONSOLIDATED BALANCE SHEET(dollars in millions)41A B B OT T 2023 A N N UA L R E P

153、 O R TDecember 3120232022Liabilities and Shareholders InvestmentCurrent liabilities:Trade accounts payable$4,295$4,607Salaries,wages and commissions1,5971,556Other accrued liabilities5,4225,845Dividends payable955887Income taxes payable492343Current portion of long-term debt1,0802,251Total current l

154、iabilities13,84115,489Long-term debt13,59914,522Post-employment obligations and other long-term liabilities6,9477,522Commitments and contingenciesShareholders investment:Preferred shares,one dollar par value Authorized 1,000,000 shares,none issuedCommon shares,without par value Authorized 2,400,000,

155、000 shares Issued at stated capital amount Shares:2023:1,987,883,852;2022:1,986,519,27824,86924,709Common shares held in treasury,at cost Shares:2023:253,807,494;2022:248,724,257(15,981)(15,229)Earnings employed in the business37,55435,257Accumulated other comprehensive income(loss)(7,839)(8,051)Tot

156、al Abbott Shareholders Investment38,60336,686Noncontrolling interests in subsidiaries224219Total Shareholders Investment38,82736,905$73,214$74,438The accompanying notes to consolidated financial statements are an integral part of this statement.CONSOLIDATED BALANCE SHEET(dollars in millions)42A B B

157、OT T 2023 A N N UA L R E P O R TYear Ended December 31202320222021Common Shares:Beginning of YearShares:2023:1,986,519,278;2022:1,985,273,421;2021:1,981,156,896$24,709$24,470$24,145Issued under incentive stock programsShares:2023:1,364,574;2022:1,245,857;2021:4,116,5256672173Share-based compensation

158、646687642Issuance of restricted stock awards(552)(520)(490)End of YearShares:2023:1,987,883,852;2022:1,986,519,278;2021:1,985,273,421$24,869$24,709$24,470Common Shares Held in Treasury:Beginning of YearShares:2023:248,724,257;2022:221,191,228;2021:209,926,622$(15,229)$(11,822)$(10,042)Issued under i

159、ncentive stock programsShares:2023:4,881,031;2022:4,980,202;2021:5,650,168297269271PurchasedShares:2023:9,964,268;2022:32,513,231;2021:16,914,774(1,049)(3,676)(2,051)End of YearShares:2023:253,807,494;2022:248,724,257;2021:221,191,228$(15,981)$(15,229)$(11,822)Earnings Employed in the Business:Begin

160、ning of Year$35,257$31,528$27,627Net earnings5,7236,9337,071Cash 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 transactions19916165End of Year$37,554$35,257$31,528Accumulated Other Comprehensive Income(Loss):B

161、eginning of Year$(8,051)$(8,374)$(8,946)Other comprehensive income(loss)212323572End of Year$(7,839)$(8,051)$(8,374)Noncontrolling Interests in Subsidiaries:Beginning of Year$219$222$219Noncontrolling Interests share of income,net of distributions and share repurchases5(3)3End of Year$224$219$222The

162、 accompanying notes to consolidated financial statements are an integral part of this statement.CONSOLIDATED STATEMENT OF SHAREHOLDERS INVESTMENT(in millions except shares and per share data)43A B B OT T 2023 A N N UA L R E P O R TNOTES TO CONSOLIDATED FINANCIAL STATEMENTSNOTE 1 SUMMARY OF SIGNIFICA

163、NT ACCOUNTING POLICIESNature of Business Abbotts principal business is the discovery,development,manufacture and sale of a broad line of health care products.Basis of Consolidation The consolidated financial statements include the accounts of the parent company and subsidiaries,after elimination of

164、intercompany transactions.Use of Estimates The consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States and necessarily include amounts based on estimates and assumptions by management.Actual results could differ from those

165、 amounts.Significant estimates include amounts for sales rebates,income taxes,pension and other post-employment benefits,valuation of intangible assets,litiga-tion,derivative financial instruments,and inventory and accounts receivable exposures.Foreign Currency Translation The statements of earnings

166、 of foreign subsidiaries whose functional currencies are other than the U.S.dollar are translated into U.S.dollars using average exchange rates for the period.The net assets of foreign subsidiaries whose functional currencies are other than the U.S.dollar are translated into U.S.dollars using exchan

167、ge rates as of the balance sheet date.The U.S.dollar effects that arise from translating the net assets of these subsidiaries at changing rates are recorded in the foreign currency translation adjustment account,which is included in equity as a component of Accumulated other comprehensive income(los

168、s).Transaction gains and losses are recorded on the Net foreign exchange(gain)loss line of the Consolidated Statement of Earnings.Revenue Recognition Revenue from product sales is recognized upon the transfer of control,which is generally upon shipment or delivery,depending on the delivery terms set

169、 forth in the customer contract.Provisions for discounts,rebates and sales incentives to customers,and returns and other adjustments are provided for in the period the related sales are recorded.Sales incentives to cus-tomers are not material.Historical data is readily available and reliable,and is

170、used for estimating the amount of the reduction in gross sales.Revenue from the launch of a new product,from an improved version of an existing product,or for shipments in excess of a customers normal requirements are recorded when the conditions noted above are met.In those situations,manage-ment r

171、ecords a returns reserve for such revenue,if necessary.In certain Abbott businesses,primarily within diagnostics,Abbott participates in selling arrangements that include multiple perfor-mance obligations(e.g.,instruments,reagents,procedures,and service agreements).The total transaction price of the

172、contract is allocated to each performance obligation in an amount based on the estimated relative standalone selling prices of the promised goods or services underlying each performance obligation.Income Taxes Deferred income taxes are provided for the tax effect of differences between the tax bases

173、 of assets and liabilities and their reported amounts in the financial statements at the enacted statutory rate to be in effect when the taxes are paid.No additional income taxes have been provided for any remaining undistributed foreign earnings not subject to the transition tax related to the U.S.

174、Tax Cuts and Jobs Act(TCJA),or any additional outside basis differences that exist,as these amounts continue to be indefinitely reinvested in foreign operations.The TCJA sub-jects taxpayers to tax on global intangible low-taxed income(GILTI)earned by certain foreign subsidiaries.Abbott treats the GI

175、LTI tax as a period expense and provides for the tax in the year that the tax is incurred.Interest and penalties on income tax obligations are included in taxes on earnings.Earnings Per Share Unvested restricted stock units and awards that contain non-forfeitable rights to dividends are treated as p

176、articipating securities and are included in the computation of earnings per share under the two-class method.Under the two-class method,net earnings are allocated between common shares and participating securities.Net earnings allocated to common shares in 2023,2022 and 2021 were$5.701 billion,$6.90

177、5billion and$7.042 billion,respectively.Pension and Post-Employment Benefits Abbott accrues for the actuarially determined cost of pension and post-employment benefits over the service attribution periods of the employees.Abbott must develop long-term assumptions,the most significant of which are th

178、e health care cost trend rates,discount rates and the expected return on plan assets.Differences between the expected long-term return on plan assets and the actual return are amortized over a five-year period.Actuarial losses and gains are amortized over the remaining service attribution periods of

179、 the employees under the corridor method.Fair Value Measurements For assets and liabilities that are measured using quoted prices in active markets,total fair value isthe published market price per unit multiplied by the number ofunits held without consideration of transaction costs.Assets andliabil

180、ities that are measured using significant other observable inputs arevalued by reference to similar assets or liabilities,adjusted for contract restrictions and other terms specific to that asset or liability.For these items,a significant portion of fair value is derived by reference to quoted price

181、s of similar assets or liabili-ties in active markets.For all remaining assets and liabilities,fair value is derived using a fair value model,such as a discounted cash flow model or Black-Scholes model.Purchased intangible assets are recorded at fair value.The fair value of significant purchased int

182、angible assets is based on independent appraisals.Abbott uses adiscounted cash flow model to value intangible assets.The dis-counted cash flow model requires assumptions about the timing and amount of future net cash flows,risk,the cost of capital,terminal values and market participants.Intangible a

183、ssets are reviewed for impairment on a quarterly basis.Goodwill and indefinite-lived intangible assets are tested for impairment at least annually.Share-Based Compensation The fair value of stock options andrestricted stock awards and units are amortized over their requisite service period,which cou

184、ld be shorter than the vesting period if an employee is retirement eligible,with a charge to compensation expense.Litigation Abbott accounts for litigation losses in accordance with Financial Accounting Standards Board(FASB)Accounting Standards Codification(ASC)No.450,“Contingencies.”Under ASC No.45

185、0,loss contingency provisions are recorded for proba-ble losses at managements best estimate of a loss,or when a best estimate cannot be made,a minimum loss contingency amount is recorded.Legal fees are recorded as incurred.Cash,Cash Equivalents and Investments Cash equivalents consist of bank time

186、deposits,U.S.government securities,money market funds and U.S.treasury bills with original maturities of three months or less.Abbott holds certain investments with a carrying value of$141million that are accounted for under the equity method of accounting.Investments held in a rabbi trust 44A B B OT

187、 T 2023 A N N UA L R E P O R TNOTES TO CONSOLIDATED FINANCIAL STATEMENTSandinvestments in publicly traded equity securities are recorded at fair value and changes in fair value are recorded in earnings.Investments in equity securities that are not traded on public stock exchanges are recorded at cos

188、t minus impairment,if any,plus or minus changes resulting from observable price changes in orderly transactions for identical or similar investments of the same issuer.Trade Receivable Valuations Accounts receivable are stated at the net amount expected to be collected.The allowance for doubt-ful ac

189、counts reflects the current estimate of credit losses expected to be incurred over the life of the accounts receivable.Abbott considers various factors in establishing,monitoring,and adjust-ing its allowance for doubtful accounts,including the aging of the accounts and aging trends,the historical le

190、vel 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.Accounts receivable are charged off after all reaso

191、nable means to collect the full amount(including litigation,where appropriate)have been exhausted.Inventories Inventories are stated at the lower of cost(first-in,first-out basis)or net realizable value.Cost includes material and conversion costs.Property and Equipment Depreciation and amortization

192、are provided on a straight-line basis over the estimated useful lives of the assets.The following table shows estimated useful lives of property and equipment:ClassificationEstimated Useful LivesBuildings10 to 50 yearsEquipment2 to 20 years Product Liability Abbott accrues for product liability clai

193、ms when it is probable that a liability has been incurred and the amount of the liability can be reasonably estimated based on existing information.The liabilities are adjusted quarterly as additional information becomes available.Product liability lossesare self-insured.Research and Development Cos

194、ts Internal research and develop-ment costs are expensed as incurred.Clinical trial costs incurred by third parties are expensed as the contracted work is performed.Where contingent milestone payments are due to third parties under research and development arrangements,the milestone payment obligati

195、ons are expensed when the milestone results are achieved.Acquired In-Process and Collaborations Research and Development(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 alternative future use.These costs include ini

196、tial payments incurred prior to regulatory approval in connection with research and devel-opment collaboration agreements that provide rights to develop,manufacture,market and/or sell pharmaceutical or medical device products.The fair value of IPR&D projects acquired in a business combination are ca

197、pitalized and accounted for as indefinite-lived intangible assets until completed and are then amortized over the remaining useful life.Collaborations are not significant.Concentration of Risk and Guarantees Due to the nature of its operations,Abbott is not subject to significant concentration risks

198、 relating to customers,products or geographic locations.Product warranties are not significant.Abbott has no material exposures to off-balance sheet arrange-ments;no special purpose entities;nor activities that include non-exchange-traded contracts accounted for at fair value.Abbott periodically acq

199、uires a business or product rights in which Abbott agrees to pay contingent consideration based on attaining certain thresholds or based on the occurrence of certain events.NOTE 2 NEW ACCOUNTING STANDARDSRECENTLY ADOPTED ACCOUNTING STANDARDSIn September 2022,the FASB issued Accounting Standards Upda

200、te(ASU)2022-04,Disclosure of Supplier Finance Program Obligations,which requires an entity to report information about its supplier finance program.Abbott adopted the standard on January 1,2023.The new standard did not have an impact on Abbotts consolidated financial statements.In December 2019,the

201、FASB issued ASU 2019-12,Income Taxes(Topic 740):Simplifying the Accounting for Income Taxes,which among other things,eliminates certain exceptions in the current rules regarding the approach for intraperiod tax allocations and the methodology for calculating income taxes in an interim period,and cla

202、rifies the accounting for transactions that result in a step-up in the tax basis of goodwill.Abbott adopted the standard on January 1,2021.The new standard did not have an impact on itsconsolidated financial statements.RECENT ACCOUNTING STANDARDS NOT YET ADOPTEDIn November 2023,the FASB issued ASU 2

203、023-07,Segment Reporting(Topic 280):Improvements to Reportable Segment Disclosures,which expands the breadth and frequency of requiredsegment disclosures.The guidance is required to be applied retrospectively to all periods presented in the financial statements.The standard becomes effective for Abb

204、ott 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 Disc

205、losures,which requires an entity to disclose annually additional information related to the companys income tax rate reconciliation and income taxes paid during the period.The guidance should be applied prospectively with the option to apply the standard retro-spectively.The standard becomes effecti

206、ve for Abbott for full year 2025 reporting.Abbott is currently evaluating the impact of this new standard on its consolidated financial statements.NOTE 3 REVENUEAbbotts revenues are derived primarily from the sale of a broadline of health care products under short-term receivable arrangements.Patent

207、 protection and licenses,technological and performance features,and inclusion of Abbotts products under acontract most impact which products are sold;price controls,competition and rebates most impact the net selling prices of products;and foreign currency translation impacts the measure-ment of net

208、 sales and costs.Abbotts products are generally sold directly to retailers,wholesalers,distributors,hospitals,health care facilities,laboratories,physicians offices and government agencies throughout the world.Abbott has four reportable seg-ments:Established Pharmaceutical Products,Diagnostic Produc

209、ts,Nutritional Products,and Medical Devices.45A B B OT T 2023 A N N UA L R E P O R TNOTES TO CONSOLIDATED FINANCIAL STATEMENTSThe following tables provide detail by sales category:202320222021(inmillions)U.S.IntlTotalU.S.IntlTotalU.S.IntlTotalEstablished Pharmaceutical Products Key Emerging Markets$

210、3,807$3,807$3,766$3,766$3,565$3,565Other1,2591,2591,1461,1461,1531,153Total5,0665,0664,9124,9124,7184,718Nutritionals Pediatric Nutritionals1,9771,9573,9341,5621,9193,4812,1922,1064,298Adult Nutritionals1,4362,7844,2201,3572,6213,9781,3642,6323,996Total3,4134,7418,1542,9194,5407,4593,5564,7388,294Di

211、agnostics Core Laboratory1,2433,9165,1591,1373,7514,8881,1453,9835,128Molecular1724025743706259955668611,427Point of Care396169565372153525384152536Rapid Diagnostics2,5181,1723,6906,6523,40910,0614,9163,5198,435Total4,3295,6599,9888,5317,93816,4697,0118,51515,526Medical Devices Rhythm Management1,08

212、51,1702,2551,0291,0902,1191,0181,1802,198Electrophysiology1,0081,1872,1959091,0181,9277781,1291,907Heart Failure8882731,1618092261,0357722351,007Vascular9781,7032,6818641,6192,4839151,7392,654Structural Heart8831,0611,9448188941,7127308801,610Neuromodulation725165890619151770616165781Diabetes Care 2

213、,1293,6325,7611,6333,1234,7561,2123,1164,328Total7,6969,19116,8876,6818,12114,8026,0418,44414,485Other14141111341852Total$15,452$24,657$40,109$18,142$25,511$43,653$16,642$26,433$43,075Note:The Acelis Connected Health business was internally transferred from Rapid Diagnostics to Heart Failure on Janu

214、ary 1,2023.As a result,$115million of sales in 2022 and$118million of sales in 2021 were moved from Rapid Diagnostics to Heart Failure.Products sold by the Diagnostics segment include various types ofdiagnostic tests to detect the COVID-19 coronavirus.Abbotts COVID-19 testing-related sales totaled a

215、pproximately$1.6billion in 2023,$8.4billion in 2022 and$7.7billion in 2021.Abbott recognizes revenue from product sales upon the transfer of control,which is generally upon shipment or delivery,depend-ing on the delivery terms set forth in the customer contract.For maintenance agreements that provid

216、e service beyond Abbotts standard warranty and other service agreements,revenue is recognized ratably over the contract term.A time-based measure of progress appropriately reflects the transfer of services to the customer.Payment terms between Abbott and its customers vary by the type of customer,co

217、untry of sale,and the products or services offered.The term between invoicing and the payment due date is not significant.Management exercises judgment in estimating variable consider-ation.Provisions for discounts,rebates and sales incentives to customers,and returns and other adjustments are provi

218、ded for in the period the related sales are recorded.Sales incentives to cus-tomers are not material.Historical data is readily available and reliable,and is used for estimating the amount of the reduction in gross sales.Abbott provides rebates to government agencies,whole-salers,group purchasing or

219、ganizations and other private entities.Rebate amounts are usually based upon the volume of purchases using contractual or statutory prices for a product.Factors used inthe rebate calculations include the identification of which products have been sold subject to a rebate,which customer or government

220、 agency price terms apply,and the estimated lag time between sale and payment of a rebate.Using historical trends,adjusted for current changes,Abbott estimates the amount of the rebate that will be paid,and records the liability as a reduction of gross sales when Abbott records its sale of the produ

221、ct.Settlement of the rebate generally occurs from one to six months after sale.Abbott regularly analyzes the historical rebate trends and makes adjustments to reserves for changes in trends and terms of rebate programs.Historically,adjustments to prior years rebate accruals have not been material to

222、 net income.Other allowances charged against gross sales include cash dis-counts and returns,which are not significant.Cash discounts are known within 15 to 30 days of sale,and therefore can be reliably estimated.Returns can be reliably estimated because Abbotts historical returns are low,and becaus

223、e sales return terms and other sales terms have remained relatively unchanged for several periods.Product warranties are also not significant.46A B B OT T 2023 A N N UA L R E P O R TNOTES TO CONSOLIDATED FINANCIAL STATEMENTSAbbott also applies judgment in determining the timing of revenue recognitio

224、n related to contracts that include multiple performance obligations.The total transaction price of the con-tract is allocated to each performance obligation in an amount based on the estimated relative standalone selling prices of the promised goods or services underlying each performance obligatio

225、n.For goods or services for which observable standalone selling prices are not available,Abbott uses an expected cost plus amargin approach to estimate the standalone selling price of eachperformance obligation.REMAINING PERFORMANCE OBLIGATIONSAs of December31,2023,the estimated revenue expected to

226、be recognized in the future related to performance obligations that are unsatisfied(or partially unsatisfied)was approximately$4.4billion in the Diagnostic Products segment and approximately$478million in the Medical Devices segment.Abbott expects to recognize reve-nue on approximately 58 percent of

227、 these remaining performance obligations over the next 24 months,approximately 17 percent over the subsequent 12 months and the remainder thereafter.These performance obligations primarily reflect the future sale of reagents/consumables in contracts with minimum purchase obligations,extended warrant

228、y or service obligations related to previously sold equipment,and remote monitoring services related to previously implanted devices.Abbott has applied the practical expedient described in ASC 606-10-50-14 and has not included remaining performance obligations related to contracts with original expe

229、cted durations of one year or less in the amounts above.ASSETS RECOGNIZED FOR COSTS TO OBTAIN A CONTRACT WITH A CUSTOMERAbbott has applied the practical expedient in ASC 340-40-25-4 and records as an expense the incremental costs of obtaining contracts with customers in the period of occurrence when

230、 the amortization period of the asset that Abbott otherwise would have recognized is one year or less.Upfront commission fees paid to sales personnel as a result of obtaining or renewing contracts with customers are incremental to obtaining the contract.Abbott capi-talizes these amounts as contract

231、costs.Capitalized commission fees are amortized based on the contract duration to which the assets relate which ranges from two to ten years.The amounts as of December31,2023 and 2022 were not significant.Additionally,the cost of transmitters provided to customers that use Abbotts remote monitoring

232、service with respect to certain medical devices are capitalized as contract costs.Capitalized transmitter costs are amortized based on the timing of the transfer of services to which the assets relate,which typically ranges from eight to ten years.The amounts as of December31,2023 and 2022 were not

233、significant.OTHER CONTRACT ASSETS AND LIABILITIESAbbott discloses Trade receivables separately in the Consolidated Balance Sheet at the net amount expected to be collected.Contract assets primarily relate to Abbotts conditional right to consider-ation for work completed but not billed at the reporti

234、ng date.Contract assets at the beginning and end of the period,as well as the changes in the balance,were not significant.Contract liabilities primarily relate to payments received from customers in advance of performance under the contract.Abbotts contract liabilities arise primarily in the Medical

235、 Devices reportable segment when payment is received upfront for various multi-period extended service arrangements.Changes in the contract liabilities during the period are as follows:(inmillions)Contract Liabilities:Balance at December 31,2021$520Unearned revenue from cash received during the peri

236、od578Revenue recognized related to contract liability balance(598)Balance at December 31,2022500Unearned revenue from cash received during the period469Revenue recognized related to contract liability balance(424)Balance at December 31,2023$545NOTE 4 SUPPLEMENTAL FINANCIAL INFORMATIONOther(income)ex

237、pense,net,for 2023,2022 and 2021 includes approximately$498 million,$406million and$270million of income,respectively,related to the non-service cost components of the net periodic benefit costs associated with the pension and post-retirement medical plans.The following summarizes the activity relat

238、ed to the allowance fordoubtful accounts:(inmillions)Allowance for Doubtful Accounts:Balance at December 31,2021$313Provisions/charges to income6Amounts charged off and other deductions(57)Balance at December 31,2022262Provisions/charges to income26Amounts charged off and other deductions(47)Balance

239、 at December 31,2023$241The allowance for doubtful accounts reflects the current estimate of credit losses expected to be incurred over the life of the accounts receivable.Abbott considers various factors in establishing,monitoring,and adjusting its allowance for doubtful accounts,including the agin

240、g 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

241、.47A B B OT T 2023 A N N UA L R E P O R TNOTES TO CONSOLIDATED FINANCIAL STATEMENTSThe detail of various balance sheet components is as follows:(inmillions)December3120232022Long-term Investments:Equity securities$555$558Other244208Total$799$766The increase in Abbotts long-term investments as of Dec

242、ember31,2023 versus the balance as of December31,2022 is primarily due to investments acquired as part of a business acquisition and other additional investments,partially offset by the impact of equity method investment losses.Abbotts equity securities as of December31,2023 and December31,2022,incl

243、ude$314million and$298 million,respectively,of investments in mutual funds that are held in a rabbi trust acquired as part of the St.Jude Medical,Inc.(St.Jude Medical)business acquisition.These investments,which are specifically designated as available for the purpose of paying benefits under a defe

244、rred compensation plan,are not available for general corporate pur-poses and are subject to creditor claims in the event of insolvency.Abbott also holds certain investments as of December31,2023 with a carrying value of$141million that are accounted for under the equity method of accounting and othe

245、r equity investments with a carrying value of$88million that do not have a readily determinable fair value.(inmillions)December3120232022Other Accrued Liabilities:Accrued rebates payable to government agencies$650$638Accrued other rebates(a)1,0911,087All other 3,6814,120Total$5,422$5,845(a)Accrued w

246、holesaler chargeback rebates of$232million and$234million at December31,2023 and 2022,respectively,are netted in trade receivables because Abbotts customers are invoiced at a higher catalog price but only remit to Abbott their contract price for the products.(inmillions)December3120232022Post-employ

247、ment Obligations and Other Long-term Liabilities:Defined benefit pension plans and post-employment medical and dental plans for significant plans$1,964$1,784Deferred income taxes568991Operating lease liabilities949943All other(b)3,4663,804Total$6,947$7,522(b)Includes approximately$650 million and$85

248、0 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 ACCUMULATED OTHER COMPREHENSIVE INCOME(LOSS)The components of the changes in accumulated other comprehensive income(loss),net of income tax

249、es,are as follows:(inmillions)Cumulative Foreign Currency Translation AdjustmentsNet Actuarial Gains(Losses)and Prior Service(Costs)and CreditsCumulative Gains (Losses)on Derivative Instruments Designated as Cash Flow HedgesTotalBalance at December 31,2021$(5,839)$(2,670)$135$(8,374)Other comprehens

250、ive income(loss)before reclassifications(894)1,007199312(Income)loss amounts reclassified from accumulated other comprehensive income(a)170(159)11Net current period other comprehensive income(loss)(894)1,17740323Balance at December 31,2022(6,733)(1,493)175(8,051)Other comprehensive income(loss)befor

251、e reclassifications2121275344(Income)loss amounts reclassified from accumulated other comprehensive income(a)17(10)(139)(132)Net current period other comprehensive income(loss)229117(134)212Balance at December 31,2023$(6,504)$(1,376)$41$(7,839)(a)(Income)loss amounts reclassified from accumulated ot

252、her 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.48A B B OT T 2023 A N N UA L R E P O R TNOTES TO CONSOLIDATED FINANCIA

253、L STATEMENTSNOTE 6 BUSINESS ACQUISITIONSOn September 22,2023,Abbott completed the acquisition of Bigfoot Biomedical,Inc.(Bigfoot),which will further Abbotts efforts to develop connected solutions for making diabetes management more personal and precise.The purchase price,the preliminary allocation o

254、f acquired assets and liabilities,and the revenue and net income contributed by Bigfoot since the date of acquisition are not material to Abbotts consolidated financial statements.On April 27,2023,Abbott completed the acquisition of Cardiovascular Systems,Inc.(CSI)for$20 per common share,which equat

255、ed to a purchase price of$851million.The transaction was funded with cash on hand and accounted for as a business combination.CSIs atherectomy system,which is used in treating peripheral and coronary artery disease,adds complementary technologies to Abbotts portfolio of vascular device offerings.The

256、 preliminary allocation of the purchase price of the CSI acqui-sition resulted in the recording of two non-deductible developed technology intangible assets of$305million;non-deductible in-process research and development of$15million,which will be accounted for as an indefinite-lived intangible ass

257、et until regula-tory approval or discontinuation;non-deductible goodwill of$371million;net deferred tax assets of approximately$46million and other net assets of approximately$114million.The goodwill isidentifiable to the Medical Devices reportable segment and is attributable to expected synergies f

258、rom combining operations,as well as intangible assets that do not qualify for separate recogni-tion.Allocation of the purchase price of the acquisition will be finalized when the valuation of assets and liabilities is completed.Revenues and earnings of CSI included in Abbotts consolidated financial

259、statements since the acquisition date are not material to Abbotts consolidated revenue and earnings.If the acquisition of CSI had taken place as of the beginning of 2022,consolidated net sales and earnings would not have been significantly different from reported amounts.In September 2021,Abbott acq

260、uired Walk Vascular,LLC(Walk Vascular),a commercial-stage medical device company with a minimally invasive thrombectomy system designed to remove peripheral blood clots.Walk Vasculars peripheral thrombectomy system has been incorporated into Abbotts existing endovascular portfolio.The purchase price

261、,the allocation of acquired assets and liabilities,and the revenue and net income contributed by Walk Vascular since the date of acquisition are not material to Abbotts consolidated financial statements.NOTE 7 GOODWILL AND INTANGIBLE ASSETS The total amount of goodwill reported was$23.7billion at De

262、cember31,2023 and$22.8billion at December31,2022.In2023,recent business acquisitions increased goodwill by approximately$576million.Foreign currency translation adjust-ments increased goodwill by$304million in 2023 and decreased goodwill by$431million in 2022.The amount of goodwill related to report

263、able segments at December31,2023 was$2.7billion for the Established Pharmaceutical Products segment,$285million for the Nutritional Products segment,$3.6billion for the Diagnostic Products segment,and$17.1billion for the Medical Devices segment.There were no reductions of goodwill relating toimpairm

264、ents in 2023 and 2022.The gross amount of amortizable intangible assets,primarily product rights and technology,was$27.7billion and$27.2billion as of December31,2023 and 2022,respectively.The gross amount of amortizable intangible assets increased by$305million due to a recent business acquisition.A

265、ccumulated amortization was$19.7billion and$17.6billion as of December 31,2023 and December 31,2022,respectively.Foreign currency translation adjustments increased intangible assets by$44million in 2023 anddecreased intangible assets by$150million in 2022.The estimated annual amortization expense fo

266、r intangible assets recorded at December31,2023 is approximately$1.9billion in 2024,$1.7billion in 2025,$1.6billion in 2026,$1.3billion in 2027 and$0.7billion in 2028.Amortizable intangible assets are amor-tized over 2 to 20 years.Indefinite-lived intangible assets,which relate to IPR&D acquired in

267、a business combination,were approximately$787million and$807million at December31,2023 and 2022,respectively.In 2023,$100million of impairment charges related to certain indefinite-lived intangible assets in the Medical Devices reportable segment were recorded on the Research and development line of

268、 the Consolidated Statement of Earnings.Recent business acquisitions increased IPR&D assets by$80million.In 2022,$111million of impairment charges were recorded on the Research and develop-ment line of the Consolidated Statement of Earnings related to certain IPR&D intangible assets associated with

269、the Medical Devices business segment.NOTE 8 RESTRUCTURING PLANSIn 2023,Abbott management approved plans to restructure various operations in order to reduce costs in its medical devices,diagnostic,and established pharmaceutical businesses.Abbott recorded employee related severance and other charges

270、of approx-imately$144million of which approximately$56million was recorded in Cost of products sold,approximately$22million was recorded in Research and development and approximately$66million was recorded in Selling,general and administrative expenses.Payments related to these actions totaled$65mil

271、lion in2023 and the remaining liability totaled$79million at December31,2023.In addition,Abbott recognized fixed asset impairment and inventory related charges of approximately$31million related to these restructuring plans.In 2022,Abbott management approved plans to streamline operations in order t

272、o reduce costs and improve efficiencies in its medical devices,nutritional,diagnostic,and established pharmaceutical businesses.Abbott recorded employee related severance and other charges of approximately$234million of which approximately$59million was recorded in Cost of products sold,approximatel

273、y$36million was recorded in Research and development and approximately$139million was recorded in Selling,general and administrative expenses.In addition,Abbott recognized inventory related charges of approximately$23million and fixed assets impairment charges of approximately$4million related to th

274、ese restructuring plans.49A B B OT T 2023 A N N UA L R E P O R TNOTES TO CONSOLIDATED FINANCIAL STATEMENTSThe following summarizes the activity related to the 2022 restructuring actions and the status of the related accruals as ofDecember31,2023:(inmillions)Restructuring charges in 2022$234Payments

275、and other adjustments(6)Accrued balance at December 31,2022228Payments and other adjustments(170)Accrued balance at December 31,2023$58In 2021,Abbott management approved a restructuring plan related to its Diagnostic Products segment to align its manufacturing network for COVID-19 diagnostic tests w

276、ith changes in the second quarter of 2021 in projected testing demand driven by several factors,including significant reductions in cases in the U.S.and other major developed countries,the accelerated rollout of COVID-19 vaccines globally and the U.S.health authoritys updated guidance on testing for

277、 fully vaccinated individuals.Charges under this plan were recorded in Cost of products sold and totaled$441million in 2021.The following summarizes the activity related to this restructuring action and the status of the related accruals as of December31,2023:(inmillions)Inventory-Related ChargesFix

278、ed Asset Write-DownsOther Exit CostsTotalRestructuring charges recorded in 2021$248$80$113$441Payments(90)(90)Other non-cash(248)(80)(328)Accrued balance at December 31,20212323Payments and other adjustments(10)(10)Accrued balance at December 31,20221313Payments and other adjustments(13)(13)Accrued

279、balance at December 31,2023$In 2021,Abbott management approved plans to streamline operations in order to reduce costs and improve efficiencies in its diagnostic,established pharmaceutical,nutritional,and medical device businesses.Abbott recorded employee related severance and other charges of appro

280、ximately$68million of which approximately$16million was recorded in Cost of products sold,approximately$4million was recorded in Research and development and approximately$48million was recorded in Selling,general and administrative expenses.Restructuring activi-ties under the 2021 plans have been c

281、ompleted and there are no remaining liabilities under these plans as of December 31,2023.NOTE 9 INCENTIVE STOCK PROGRAMThe 2017 Incentive Stock Program authorizes the granting of nonqualified stock options,restricted stock awards,restricted stock units,performance awards,foreign benefits and other s

282、hare-based awards.Stock options and restricted stock awards and units comprise the majority of benefits that have been granted and are currently outstanding under this program and a prior program.In2023,Abbott granted 2,027,255 stock options,474,369 restricted stock awards and 4,981,231 restricted s

283、tock units under this program.Under Abbotts stock incentive programs,the purchase price of 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 of an option is 10 years.Options generally vest equally over three years.Restri

284、cted stock awards generally vest over three years,with no more than one-third of the award vesting in any one year upon Abbott reaching a minimum return on equity target.Restricted stock units vest over three years and upon vesting,the recipient receives one share of Abbott stock for each vested res

285、tricted stock unit.The aggregate fair market value of options and restricted stock awards and units is recognized as expense over the requisite service period,which may be shorter than the vesting period if an employee is retirement eligible.Forfeitures are estimated at the time of grant.Restricted

286、stock awards and settlement of vested restricted stock units are issued out of treasury shares.Abbott generally issues new shares for exercises of stock options.As a policy,Abbott does not purchase its shares relating to its share-based programs.In April 2017,Abbotts shareholders authorized the 2017

287、 Incentive Stock Program under which a maximum of 170million shares were available for issuance.At December31,2023,approximately 74million shares remained available for future issuance.The following table summarizes stock option activity for the year ended December31,2023 and the outstanding stock o

288、ptions as of December31,2023.(intrinsic values inmillions)OptionsWeighted Average Exercise PriceWeighted Average Remaining Life(Years)Aggregate Intrinsic ValueOutstanding at December 31,202228,288,046$70.645.3$1,167Granted2,027,255106.03Exercised(1,664,222)44.71Lapsed(82,004)122.08Outstanding at Dec

289、ember 31,202328,569,075$74.524.8$1,073Exercisable at December 31,202323,921,284$66.904.1$1,06450A B B OT T 2023 A N N UA L R E P O R TNOTES TO CONSOLIDATED FINANCIAL STATEMENTSThe following table summarizes restricted stock awards and units activity for the year ended December31,2023.Share UnitsWeig

290、hted Average Grant-Date Fair ValueOutstanding at December 31,202210,400,328$114.59Granted5,455,600106.11Vested(5,069,639)109.81Forfeited(508,003)113.48Outstanding at December 31,202310,278,286$112.51The fair market value of restricted stock awards and units vested in 2023,2022 and 2021 was$536 milli

291、on,$639million and$809 million,respectively.The total intrinsic value of options exercised in 2023,2022 and 2021 was$102 million,$85million and$393 million,respectively.The total unrecognized compensation cost related to all share-based compensation plans at December31,2023 amounted to approximately

292、$450 million,which is expected to be recognized over the next three years.Total non-cash stock compensation expense charged against income in 2023,2022 and 2021 for share-based plans totaled approximately$644 million,$685million and$640 million,respectively,and the tax benefit recognized was approxi

293、mately$144 million,$170million and$267 million,respectively.Stock compensation cost capitalized as part of inventory is not significant.The table below summarizes the fair value of an option granted in2023,2022 and 2021 and the assumptions included in the Black-Scholes option-pricing model used to e

294、stimate the fair value:202320222021Fair value$26.87$25.26$24.17Risk-free interest rate4.0%1.9%0.8%Average life of options(years)6.06.06.0Volatility24.4%23.8%23.8%Dividend yield1.9%1.6%1.5%The risk-free interest rate is based on the rates available at the time of the grant for zero-coupon U.S.governm

295、ent issues with a remaining term equal to the options expected life.The average life of an option is based on both historical and projected exercise and lapsing data.Expected volatility is based on implied volatilities from traded options on Abbotts stock and historical volatility of Abbotts stock o

296、ver the expected life of the option.Dividend yield is based on the options exercise price and annual dividend rate atthe time of grant.NOTE 10 DEBT AND LINES OF CREDITThe following is a summary of long-term debt at December31:(in millions)202320220.875%Notes,due 2023$1,2153.40%Notes,due 20231,0505-y

297、ear term loan due 20244194460.10%Notes,due 20246556292.95%Notes,due 20251,0001,0003.875%Notes,due 20255005001.50%Notes,due 20261,2661,2153.75%Notes,due 20261,7001,7000.375%Notes,due 20276556291.15%Notes,due 20286506501.40%Notes,due 20306506504.75%Notes,due 20361,6501,6506.15%Notes,due 20375475476.00

298、%Notes,due 20395155155.30%Notes,due 20406946944.75%Notes,due 20437007004.90%Notes,due 20463,2503,250Unamortized debt issuance costs(56)(71)Other,including fair value adjustments relating to interest rate hedge contracts designated as fair value hedges(116)(196)Total carrying amount of long-term debt

299、14,67916,773Less:Current portion1,0802,251Total long-term portion$13,599$14,522On November 30,2023,Abbott repaid the$1.05billion outstanding principal amount of its 3.40%Notes upon maturity.On September27,2023,Abbott repaid the 1.14billion outstanding principal amount of its 0.875%Notes upon maturit

300、y.The repay-ment equated to approximately$1.2billion.In September 2023,Abbott repaid approximately$197million of debt assumed as partof a recent business acquisition.On March 15,2022,Abbott repaid the$750million outstanding principal amount of its 2.55%Notes upon maturity.In December 2021,Abbott rep

301、aid a short-term facility for approximately$195 million.After the repayment,Abbott has no short-term borrowings.Abbott has readily available financial resources,including unused lines of credit that support commercial paper borrowing arrangements and provide Abbott with the ability to borrow up to$5

302、billion on an unsecured basis.The lines of credit as of December 31,2023 were a part of a Five Year Credit Agreement 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).51A

303、B B OT T 2023 A N N UA L R E P O R TNOTES TO CONSOLIDATED FINANCIAL STATEMENTSThere were no outstanding borrowings under the 2020 Agreement at the time of its termination.Any borrowings under the Revolving Credit Agreement will mature and be payable on January 29,2029 and will bear interest,at Abbot

304、ts option,based on either a base rate or Secured Overnight Financing Rate(SOFR)rate,plus an applicable margin based on Abbotts credit ratings.Principal payments required on long-term debt outstanding at December31,2023 are$1.1billion in 2024,$1.5billion in 2025,$3.0billion in 2026,$656million in 202

305、7,$651million in 2028 and$8.0billion in 2029 and thereafter.At December31,2023,Abbotts long-term debt rating was AA-by S&P Global Ratings and Aa3 by Moodys Investors Service.Abbott expects to maintain an investment grade rating.NOTE 11 LEASESLEASES WHERE ABBOTT IS THE LESSEEAbbott has entered into o

306、perating leases as the lessee for office space,manufacturing facilities,R&D laboratories,warehouses,vehicles and equipment.Finance leases are not significant.Abbotts operating leases generally have remaining lease terms of 1 to 10 years.Some leases include options to extend beyond the original lease

307、 term,generally up to 10 years and some include options to terminate early.These options have been included in the determination of the lease liability when it is reasonably certain that the option will be exercised.For all of its asset classes,Abbott elected the practical expedient allowed under FA

308、SB ASC No.842,“Leases”to account for each lease component(e.g.,the right to use office space)and the associated non-lease components(e.g.,maintenance services)as a single lease component.Abbott also elected the short-term lease accounting policy for all asset classes;therefore,Abbott is not recogniz

309、ing a lease liability or right of use(ROU)asset for any lease that,at the commencement date,has a lease term of 12months or less and does not include an option to purchase the underlying asset that Abbott is reasonably certain to exercise.As Abbotts leases typically do not provide an implicit rate,t

310、heinterest rate used to determine the present value of the pay-mentsunder each lease typically reflects Abbotts incremental borrowing rate based on information available at the lease commencement date.The following table provides information related to Abbotts operating leases:(in millions,except we

311、ighted averages)202320222021Operating lease cost(a)$356$355$359Cash paid for amounts included in the measurement of operating lease liabilities276274287ROU assets arising from entering into new operating lease obligations253263343Weighted average remaining lease term at December 31(in years)788Weigh

312、ted average discount rate at December 313.4%2.9%2.7%(a)Includes short-term lease expense and variable lease costs,which were immaterial in the years ended December31,2023,2022 and 2021.Future minimum lease payments under non-cancellable operating leases as of December31,2023 were as follows:(inmilli

313、ons)2024$2782025246202620620271462028110Thereafter376Total future minimum lease payments undiscounted1,362Less:imputed interest(168)Present value of lease liabilities$1,194The following table summarizes the amounts and location of operating lease ROU assets and lease liabilities:(inmillions)December

314、3120232022 BalanceSheetCaptionOperating Lease ROU Asset$1,122$1,116Deferred income taxes and other assetsOperating Lease Liability:Current$245$230Other accrued liabilitiesNon-current949943Post-employment obligations and other long-term liabilitiesTotal Liability$1,194$1,173LEASES WHERE ABBOTT IS THE

315、 LESSORCertain assets,primarily diagnostics instruments,are leased tocustomers under contractual arrangements that typically include an operating or sales-type lease as well as performance obligations for reagents and other consumables.Sales-type leases are not significant.Contract terms vary by cus

316、tomer and may include options to terminate the contract or options to extend the contract.Where instruments are provided under operating lease arrangements,some portion or the entire lease revenue may be variable and subject to subsequent non-lease component(e.g.,reagent)sales.The allocation of reve

317、nue between the lease and non-lease components is based on standalone selling prices.Operating lease revenue represented less than 3 percent of Abbotts total net sales in the years ended December31,2023,2022and 2021.Assets related to operating leases are reported within Net property and equipment on

318、 the Consolidated Balance Sheet.The original cost and the net book value of such assets were$3.9billion and$1.8 billion,respectively,as of December31,2023 and$3.6billion and$1.6 billion,respectively,as of December31,2022.52A B B OT T 2023 A N N UA L R E P O R TNOTES TO CONSOLIDATED FINANCIAL STATEME

319、NTSNOTE 12 FINANCIAL INSTRUMENTS,DERIVATIVES AND FAIR VALUE MEASURESCertain Abbott foreign subsidiaries enter into foreign currency forward exchange contracts to manage exposures to changes in foreign exchange rates primarily for anticipated intercompany purchases by those subsidiaries whose functio

320、nal currencies are not the U.S.dollar.These contracts,with gross notional amounts totaling$7.3billion at December31,2023,and$7.7billion at December31,2022,are designated as cash flow hedges of the variability of the cash flows due to changes in foreign exchange rates and are recorded at fair value.A

321、ccumulated gains and losses as of December31,2023 will be included in Cost of products sold at the time the products are sold,generally through the next twelve to eighteen months.Abbott enters into foreign currency forward exchange contracts tomanage currency exposures for foreign currency denominat

322、ed third-party trade payables and receivables,and for intercompany loans and trade accounts payable where the receivable or payable is denominated in a currency other than the functional currency ofthe entity.For intercompany loans,the contracts require Abbott to sell or buy foreign currencies,prima

323、rily European currencies,inexchange for primarily U.S.dollars and European currencies.For intercompany and trade payables and receivables,the currency exposures are primarily the U.S.dollar and European currencies.At December31,2023 and 2022,Abbott held gross notional amounts of$13.8billion and$12.0

324、 billion,respectively,of such foreign currency forward exchange contracts.Abbott has designated a yen-denominated,5-year term loan of approximately$419million and$446million as of December31,2023 and December31,2022,respectively,as a hedge of the net investment in certain foreign subsidiaries.The ch

325、ange in the valueof the debt,which is due to changes in foreign exchange rates,is recorded in Accumulated other comprehensive income(loss),netof tax.Abbott is a party to interest rate hedge contracts to manage its exposure to changes in the fair value of fixed-rate debt.These contracts are designate

326、d as fair value hedges of the variability of the fair value of fixed-rate debt due to changes in the long-term benchmark interest rates.The effect of the hedge is to change a fixed-rate interest obligation to a variable rate for that portion ofthe debt.Abbott records the contracts at fair value and

327、adjusts the carrying amount of the fixed-rate debt by an offsetting amount.Abbott had interest rate contracts totaling approximately$2.2billion at December31,2023 and$2.9billion in 2022.The decrease from 2022 was due to the maturity of$700million of interest rate hedge contracts in 2023 in conjuncti

328、on with long-term debt that also matured in 2023.The following table summarizes the amounts and location of certain derivative financial instruments as of December31:(inmillions)Fair ValueAssetsFair ValueLiabilities20232022Balance Sheet Caption20232022Balance Sheet CaptionInterest rate swaps designa

329、ted as fair value hedges:Non-current$Deferred income taxes and other assets$95$136Post-employment obligations and other long-term liabilitiesCurrentOther prepaid expenses and receivables20Other accrued liabilitiesForeign currency forward exchange contracts:Hedging instruments88304Other prepaid expen

330、ses and receivables13496Other accrued liabilitiesOthers not designated as hedges81108Other prepaid expenses and receivables97130Other accrued liabilitiesDebt designated as a hedge of net investment in a foreign subsidiaryn/a419446Current portion of long-term debt (Long-term debt in 2022)$169$412$745

331、$82853A B B OT T 2023 A N N UA L R E P O R TNOTES TO CONSOLIDATED FINANCIAL STATEMENTSThe 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 deri

332、vative financial instruments,as well as the amounts and location of income(expense)and gain(loss)reclassified into income.(inmillions)Gain(loss)Recognized in Other Comprehensive Income(loss)Income(expense)and Gain(loss)Reclassified into IncomeIncome Statement Caption202320222021202320222021Foreign c

333、urrency forward exchange contracts designated as cash flow hedges$(22)$281$164$187$234$(252)Cost of products soldDebt designated as a hedge of net investment in a foreign subsidiary277556 n/an/an/an/aInterest rate swaps designated as fair value hedges n/an/an/a61(243)(123)Interest expenseA loss of$44million and gains of$70million and$19million were recognized in 2023,2022 and 2021,respectively,rel