雅培Abbott Laboratories (ABT) 2018年年度報告「NYSE」.pdf

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1、2018 ANNUAL REPORTAbbott helps people around the world live their best lives through good health,with a diverse portfolio of products aligned with the most important demographic and technological trends in healthcare.Our life-changing technologies keep hearts healthy,nourish bodies at every stage of

2、 life,help people feel and move better,and deliver information,medicines and breakthroughs to manage peoples health.With leadership positions in important treatment areas,and a strong presence in the worlds most rapidly growing regions,Abbott is well positioned to achieve continued above-market grow

3、th,strong cash flow,and consistently strong shareholder returns.TABLE OF CONTENTS1 Letter to Shareholders6 This Is Abbott12 Diabetes Care14 Neuromodulation16 Cardiac Rhythm Management18 Heart Failure Management20 Vascular Care and Structural Heart22 Established Pharmaceuticals24 Laboratory Diagnosti

4、cs26 Rapid Diagnostics28 Adult Nutrition30 Pediatric Nutrition32 Financial ReportSADIE RUTENBERGSeattle,WashingtonFRONT COVER STORY:As a participant in a clinical trial,Sadie was the first child in the United States to receive Abbotts Masters HP 15mm,the worlds smallest rotatable mechanical heart va

5、lve.Approved by the U.S Food and Drug Administration in 2018,this dime-sized device can be a life-saving option for critically ill children.Today,Sadie is a happy,active toddler,who loves to tell new friends about the“sparkle”in her heart.MILES WHITE Chairman of the Board and Chief Executive Officer

6、(right)ROBERT FORD President,Chief Operating Officer(left)Dear Fellow Shareholder:Our performance in 2018 demonstrated the Abbott model in full.We built on strategic vision,organic innovation,and managerial discipline to deliver superior results.In the face of global volatility,Abbott again provided

7、 the reliability,stability,productivity,and growth that you expect from us.Abbott is helping to build the future of healthcare with devices that let doctors remotely monitor chronic conditions,helping reduce costs and improving patients quality of life.LETTER TO OUR SHAREHOLDERSTHE COMPANYOur excell

8、ent 2018 was a microcosm of Abbotts long history of sustained success and of the focused strategic shaping weve done in recent years to take it forward.And thats exactly our intent we manage Abbott in a very deliberate way in order to accomplish very clear goals.Our foundational goal the companys pu

9、rpose since its beginning is to create life-changing technologies that help people live fuller lives through better health.We think thats the best mission a company can have.Were mindful of the privilege and responsibility we have in producing solutions that mean so much to so many.Because of this k

10、een awareness of the importance of our work,and of the legacy we carry,we view our business through the lens of long-term,sustainable success.While we work to deliver high-quality results quarter by quarter,we think in generational terms and build Abbott to succeed for the long haul.To do so,we mana

11、ge the company with unwavering concentration on four pillars that uphold our leadership:RELEVANCEThe first and most important decision we make as a company is what businesses to be in.We have shaped Abbott with great intentionality,choosing to compete in fields that offer the highest potential for b

12、reakthrough in healthcare and return on investment.This is how we keep Abbott current with its evolving environment and deliver the greatest impact for the people who use our products and for our shareholders.Through purposeful management of our portfolio,we are now more innovative and better aligne

13、d with the future of health technology than ever before,as youll see through this reports discussion of our leadership in connected care todays most advanced and most personal medical technology.As a result,more than 50 percent of our sales today are from products and businesses that are new to the

14、company in just the last six years.BALANCEAbbott has been a diversified company for generations.Weve always sought to have a broad range of opportunities both because this provides more ways to win,and because it insulates the company from volatility in any particular market.Over time,each of our ma

15、jor businesses has been affected for better or for worse by factors in their environments.But the balance amongst them has produced successful overall performance by Abbott,year after year.PRESENCEWe intend for Abbott to be a strong and recognized presence worldwide known by all our stakeholders for

16、 the contributions we make to individuals and to society.We do this through our broad geographic reach,with business today in more than 160 countries.Our decades of experience in key international markets have given us deep local roots,with the majority of our more than 100,000 colleagues located ou

17、tside the U.S.And were further building presence by advancing our corporate identity to new audiences in new ways.Through high-visibility sponsorships,such as the Abbott World Marathon Majors,and through innovative multimedia advertising,weve reached more than three billion people around the world a

18、nd have achieved the number-5-YEAR TOTALSHAREHOLDER RETURN100%+Diabetes:FreeStyle Libre+Cardiac Rhythm Management:Confirm Rx+Heart Failure:CardioMEMS HF SystemLeading in Connected CareA B B OT T 2018 A N N UA L R E P O R T2one reputation rank with our target audiences in China and India.As a result,

19、Abbott is better known and respected than at any time in our history.EXECUTIONAchievement is deep in Abbotts culture;but its not just an intangible its built in through systems that guarantee sharp focus on the factors that keep the company successful.Our operating systems financial,quality,regulato

20、ry,compensation,and others are designed to keep our standards high and the bar rising.For instance,thanks to our highly successful cash-flow-improvement initiative which helped us generate more than$6 billion in operating cash flow last year weve been able to pay down debt from our recent acquisitio

21、ns much faster than originally planned.The resulting balance sheet gives us renewed strategic flexibility.LEADERSHIPThe result of this structured approach is leadership across multiple dimensions of our business.Our goal is to have the number-one or number-two position in our markets.Thanks to the b

22、reakthrough success of FreeStyle Libre,our glucose-monitoring system that has become our latest billion-dollar product,we are now the worlds leading company in glucose testing for diabetes.This is in addition to our global leadership positions in coronary stents,transcatheter mitral-valve repair,lef

23、t ventricular assist devices,spinal cord stimulation,branded-generic medicines,adult nutrition,blood transfusion and screening,and point-of-care diagnostic testing.Leading positions allow us to drive the markets in which we compete.But our reputation rests on our excellence across the critical dimen

24、sions of our operations.In 2018,Abbott was recognized as a premier employer,as a top innovator,and as a leading global citizen,being named to the Dow Jones Sustainability Index for the 14th consecutive year,the last six as the leader in our industry.As a result of this success across our business,Ab

25、bott has now been named Fortunes Most Admired Company in our industry for the past six years.THE YEAR2018 provided a textbook example of how Abbott works.With our recent strategic additions now fully integrated,our focus was on running the company weve built.The result was an excellent year by every

26、 key measure.All four of our major businesses performed well,leading Abbott to deliver strong organic sales growth of more than seven percent,(11.6%on a GAAP basis),which exceeded the expectations we established at the beginning of the year.This drove earnings-per-share at the top end of the range w

27、e forecast,despite headwinds from international currency.We returned$2 billion to shareholders last year and,in December,announced a dividend increase of more than 14 percent.Abbott has now paid dividends for 95 consecutive years and has raised them for the last 47 years in a row.Combined with share

28、-price growth of more than 25 percent,this produced a total shareholder return of nearly 30 percent,which was at the top of our peer group of companies.Aligned with Important TrendsWEVE BUILT A SUSTAINABLE GROWTH PLATFORM THAT WILL CONTINUE TO DRIVE SUCCESS FOR MANY YEARS TO COMEAs healthcare needs

29、grow and change around the world,Abbott works to stay ahead of those trends and respond with relevant,localized solutions.By understanding the challenges,tastes,customs,and environments that impact the health of people in each market,we can target uniquely local problems.Today,Abbott is well positio

30、ned in markets where healthcare needs are great and growing fast.A B B OT T 2018 A N N UA L R E P O R T3Growth of this magnitude is rare for companies of our size,particularly as it follows an increase of more than 50 percent in 2017.THE FUTUREFor the past 20 years we have consistently pursued a vis

31、ion of the company we want Abbott to be and the impact we intend to have on the world.The result is a sustainable growth platform that will continue to drive success for many years to come.Sustainability is the guiding principle in our management approach.Our commitment is that Abbott will be here,d

32、elivering the many benefits it provides to the people we serve.This commitment takes many forms.It means that we invest in capabilities for the future,not only in our pipeline of market-leading innovations,but also in ways such as the additional manufacturing capacity were building to support the dy

33、namic growth of FreeStyle Libre and our Alinity family of diagnostic systems.It means that we continually refine our operations to reduce our environmental footprint.It means that we invest in our people to attract and develop the talent we need to maintain Abbotts high standards,and that we continu

34、ally strengthen our organization for optimal performance.In 2018,we enhanced our leadership structure with the appointment of Robert Ford as President and Chief Operating Officer.Weve had COOs from time to time,when the business has called for that role in our structure;with the increasing scale and

35、 complexity of our business,we deemed this to be such a time.Robert is a long-time Abbott veteran,with broad experience across our global businesses,who most recently led our largest business,Medical Devices,and oversaw our integration of St.Jude Medical,our largest-ever acquisition.Having our busin

36、esses report to him gives us more managerial flexibility and strengthens us operationally.As this report and our strong 2018 performance make clear,Abbott has learned from its successful past,stands at a new peak in the present,and is poised for a future that goes farther and higher still.The future

37、 of healthcare is extraordinary and Abbott is leading the way.4MILES D.WHITE Chairman of the Board and Chief Executive OfficerMarch 4,2019A B B OT T 2018 A N N UA L R E P O R TLETTER TO OUR SHAREHOLDERSof 2018 sales came from products and businesses new to Abbott in the last six years.50%Next-genera

38、tion products and services are helping Abbott increase share and generate above-market growth in important treatment areasShaping Our Future with Life-Changing TechnologiesA B B OT T 2018 A N N UA L R E P O R T4 2018 FINANCIAL HIGHLIGHTS1 On a GAAP basis,Abbott sales increased 11.6%2 Full-year 2018

39、GAAP diluted EPS from continuing operations$1.313 GAAP EPS growth 555%For full financial data and reconciliation of non-GAAP measures,please see Abbotts 2018 earnings press release at WORLDWIDE SALES$30.6BORGANIC SALES GROWTH17.3%ADJUSTED EARNINGS PER SHARE2$2.88ADJUSTED EARNINGS PER SHARE GROWTH315

40、.2%1-YEAR TOTAL SHAREHOLDER RETURN30%5A B B OT T 2018 A N N UA L R E P O R TDIFFERENCE MAKING.THIS IS ABBOTT:A B B OT T 2018 A N N UA L R E P O R T6GROWTH DRIVING.LIFE CHANGING.A B B OT T 2018 A N N UA L R E P O R T7BUILT TO LEAD.RELEVANCEWeve aligned our business with important scientific,medical,d

41、emographic,and social trends.BALANCEWeve created a complementary mix of businesses,serving a variety of customer types.A B B OT T 2018 A N N UA L R E P O R T8Over the past five years,Abbott has executed a focused strategy to position the company for sustained,accelerated growth.EXECUTIONWeve built a

42、 culture and systems that guarantee sharp focus and drive high performance.PRESENCEWe have a long-established,highly visible presence in the worlds largest and fastest-growing markets.A B B OT T 2018 A N N UA L R E P O R T9A B B OT T 2018 A N N UA L R E P O R T1 0TO THE FULLEST.Abbott is in the busi

43、ness of life.The company weve built,and the products we develop,help people of all ages live their best possible lives through better health.A B B OT T 2018 A N N UA L R E P O R T1 1LIFE-CHANGING INNOVATION FOR PEOPLE WITH DIABETESFREESTYLE LIBRE:BREAKTHROUGH GLUCOSE-MONITORING TECHNOLOGYAbbott is t

44、he global leader in continuous glucose monitoring.Our FreeStyle Libre 14-day system is changing the way people have tested their glucose levels for decades.The system uses a small sensor the size of just two stacked quarters applied to the back of the upper arm.This device can provide real-time gluc

45、ose readings,day and night,for up to 14 days all without the pain of fingersticks.The FreeStyle Libre system provides three critical pieces of data with each scan a real-time glucose result,an eight-hour historical trend,and a directional trend arrow showing where glucose levels are headed to help u

46、sers better manage their diabetes.Studies show that users who scan more frequently experience improved average glucose levels.*FreeStyle Libre is available in every major market in the world and has more than one million users.A GROWING NEED Diabetes prevalence has been increasing in both developed

47、and developing markets.Global diabetes prevalence is expected to rise significantly.629 M450 MOF PEOPLE WITH DIABETES ARE CURRENTLY UNDIAGNOSED50%Source:IDF Diabetes Atlas 8th edition 2017*References:Ajjan,R.Insights from real world use of flash continuous glucose monitoring.Symposium conducted at:7

48、8th Scientific Sessions of the American Diabetes Association;June 22 26,2018;Orlando,FL.LEADING IN CONNECTED CAREThe FreeStyle LibreLink and LibreLinkUp*smartphone apps let people monitor their glucose without the use of a separate device,then share their data with caregivers remotely.*LibreLinkUp i

49、s not yet available in the United States201720450100200300400 500600 700MA B B OT T 2018 A N N UA L R E P O R T1 2MELISSA POLOVIN DEERFIELD,ILLINOIS,USASince being diagnosed with diabetes in her early 20s,Melissa had endured the pain and inconvenience of multiple daily finger-sticks as she worked to

50、 monitor and control her glucose levels.She describes her FreeStyle Libre system as“life-changing.”Because its so easy to use,Melissa feels that the device helps her better control her diabetes and live her life.A B B OT T 2018 A N N UA L R E P O R T1 3ADVANCED TECHNOLOGY TO MANAGE CHRONIC PAIN AND

51、MOVEMENT DISORDERSInfinity DBS was the first deep-brain-stimulation system available to offer directional leads to potentially reduce side effects.Bluetooth is a registered trademark of Bluetooth SIG,Inc indicates a third-party trademark,which is property of its respective owner.Both our Infinity an

52、d Proclaim platforms use Bluetooth wireless technology and iOS software to offer patients an intuitive therapy experienceFor people challenged by chronic pain or movement disorders,Abbott offers a portfolio of technologies designed to help them get back to living their lives.Our Proclaim devices del

53、iver spinal-cord stimulation(SCS)for the management of chronic pain,and dorsal-root-ganglion stimulation for patients seeking relief from complex regional pain syndrome or nerve pain following surgery or injury.The Proclaim SCS System is also the first upgradeable and recharge-free spinal-cord stimu

54、lation system capable of delivering both the standard tonic stimulation waveform and Abbotts proprietary BurstDR stimulation waveform,which is designed to mimic how pain signals travel to the brain.Our Infinity Deep Brain Stimulation(DBS)system addresses symptoms of Parkinsons disease and essential

55、tremor using mild pulses of electricity to the brain.A B B OT T 2018 A N N UA L R E P O R T1 46 MILLIONpeople are affected by Parkinsons diseaseMELISSA AND EDWARD HAHN WADING RIVER,NEW YORK,USAMelissa Hahn and her father,Edward,both experienced debilitating tremors from Parkinsons disease.Then Melis

56、sas doctor recommended treatment with Abbotts Infinity DBS system.After having the device implanted,Melissa found that her tremors were significantly reduced.“It gave me my life back,”she says.Edward,upon seeing the positive impact the device had for his daughter,had it implanted as well and has als

57、o seen improvement.A B B OT T 2018 A N N UA L R E P O R T1 5SETTING THE PACE IN CARDIAC RHYTHM MANAGEMENTMARIA ROSARIO RODRIGUEZ MADRID,SPAINFor most of her life,Maria Rosario has experienced heart arrhythmias.Last year,her doctors were sufficiently concerned that they suggested the use of Abbotts C

58、onfirm Rx ICM to help them better understand her condition.Using the devices Bluetooth connectivity and an app on her smartphone,they were able to remotely monitor her heart rhythms,letting them more confidently determine treatment options.1 6A B B OT T 2018 A N N UA L R E P O R TAbbott is working t

59、o transform the treatment of cardiac arrhythmias(irregular heartbeats)with innovative technologies like the Confirm Rx Insertable Cardiac Monitor(ICM),the worlds first smartphone-compatible ICM.The Confirm Rx system provides real-time access to patient data,letting physicians remotely identify even

60、the most difficult-to-detect cardiac arrhythmias.We also offer the EnSite Precision cardiac mapping system,designed to aid in the rapid diagnosis of cardiac arrhythmias;a full portfolio of cardiac ablation catheters;the Advisor HD Grid mapping catheter,which uses a first-of-its-kind electrode config

61、uration,capturing and analyzing data in new ways to create more highly detailed maps of the heart,which may result in more safe and effective treatments;and the Assurity MRI pacemaker,which combines small size with outstanding longevity,to help patients experience fewer complications and less discom

62、fort.CONFIRM RXInsertable Cardiac Monitorpeople in the world experience atrial fibrillation.33 MILLIONSource:Centers for Disease Control and Prevention,Worldwide Epidemiology of Atrial Fibrillation,a Global Burden of Disease 2010LEADING IN CONNECTED CAREOur Confirm Rx Insertable Cardiac Monitor is t

63、he worlds first smartphone-compatible ICMA B B OT T 2018 A N N UA L R E P O R T1 7A COMPREHENSIVE APPROACH TO HEART-FAILURE MANAGEMENTAbbott is the market leader in left ventricular assist devices(LVADs),mini heart pumps for patients in advanced-stage heart failure whose hearts need continuous suppo

64、rt.Our HeartMate 3 LVAD is the first implantable device of its kind to use Full MagLev flow technology,a proprietary pumping system designed to reduce trauma to the blood passing through the pump while optimizing blood flow.Improved blood flow can help minimize complications that can be associated w

65、ith LVAD therapy,ultimately improving the patients quality of life.In 2018,HeartMate 3 LVAD was approved for long-term use in patients who are not viable candidates for a heart transplant.In addition to these life-saving devices,we offer a comprehensive portfolio of heart-failure-management products

66、 that span the continuum of care,from monitoring for symptoms to advanced-stage therapy.Our innovations in this area include the revolutionary CardioMEMS pulmonary-artery pressure monitor and remote monitoring system,as well as specialized pacemakers designed for treating heart failure.LEADING IN CO

67、NNECTED CAREOur CardioMEMS sensor,which is roughly the size of a paperclip,is implanted in the pulmonary artery.It connects with a remote monitoring system that communicates important information to the doctor without the need for an office visit.CARDIOMEMSHF SystemA B B OT T 2018 A N N UA L R E P O

68、 R T1 8LOREN VINAL CORNING,NEW YORK,USA When Loren began having breathing problems,he was surprised to learn that his heart was failing.Hes a strong candidate for a heart transplant sometime in the future.In the meanwhile,Abbotts HeartMate 3 LVAD has helped him get back to doing many of the things h

69、e loves,including photography,playing guitar,and spending time with his partner,Sandy.26 millionpeople worldwide suffer from heart failureA COMPREHENSIVE HEART-FAILURE-MANAGEMENT PORTFOLIO CardioMEMS HF System Pulmonary Artery Pressure Monitor Quadra Allure MP/Quadra Assura MP Cardiac Resynchronizat

70、ion Therapies M Patient Care Network and Merlinhome Transmitter HeartMate 3 LVAD Left Ventricular Assist DeviceA B B OT T 2018 A N N UA L R E P O R T1 9MARKET-LEADING TECHNOLOGIES TO RESTORE BLOOD FLOW OR REPAIR HEART DEFECTSXIENCE SIERRAStent SystemAbbotts Vascular business provides minimally invas

71、ive products for the treatment of coronary and peripheral artery disease.Our extensive portfolio includes market-leading drug-eluting stents,bare-metal stents,coronary guide wires,balloon dilatation catheters,and imaging technology that can provide highly-detailed,3D color views of blood vessels,whi

72、ch can improve success when opening a blocked artery.KEY VASCULAR PRODUCTS XIENCE family of drug-eluting stents Optis integrated imaging system PressureWire family of pressure-sensing guidewires Hi-Torque family of guide wires Supera peripheral-stent system Command guide wires Perclose ProGlide vasc

73、ular-closure systemOPTIS Integrated Imaging System2 0A B B OT T 2018 A N N UA L R E P O R TIn our Structural Heart business,technologies include MitraClip,our leading transcatheter mitral-valve-repair device,mechanical and tissue valves,transcatheter aortic-valve-replacement and structural-heart occ

74、luder therapies.In 2018,Abbott announced the results of a large-scale clinical trial demonstrating that our MitraClip device significantly reduced death among people whose advanced heart failure had resulted in leaky mitral valves.The new data also showed that MitraClip lowered this groups heart-fai

75、lure hospitalization rates and improved their quality of life.Our Amplatzer PFO Occluder has been proven to reduce the risk of recurrent ischemic stroke in patients who had a small opening between the upper chambers of the heart.And our Amplatzer Amulet,which is available in Europe,closes a small po

76、uch in the heart to reduce the risk of stroke in people with atrial fibrillation who cannot rely on blood thinners.MASAE OGIWARA KAMI,JAPANMasae was definitely not ready to slow down.He enjoyed working on his farm,walking his dog,Pal,and spending time with his daughter,Jun.But a leaky mitral valve h

77、ad made it difficult to do even simple things like climbing a flight of stairs.Once he received Abbotts MitraClip as a participant in a clinical trial in early 2018,he felt his energy return,letting him get back to the active life he loves.MITRACLIPValve-Repair Device2 1A B B OT T 2018 A N N UA L R

78、E P O R TGLOBAL STRENGTH Abbott is a leading pharmaceutical company in India,Russia,and across Latin America with#1 positions in Chile,Colombia,and PeruETERSA(Dasatinib)is a treatment for chronic myeloid leukemia.TRUSTED BRANDS MEDICINES FOR THE WORLDS FASTEST-GROWING MARKETSIn our branded-generic m

79、edicines business,high quality standards,reliable supply chain,clinical science,broad product range,value-added services,and patient-centered innovation allow us to differentiate ourselves from pure generic competitors and provide value for patients.Every day,more than 14 million people around the w

80、orld use our medicines to help them live healthier lives.We offer market-specific product portfolios that reflect the health needs of each region,and cover a wide range of conditions and medical needs,including cardiovascular(Lipanthyl,Tarka,Synthroid),gastrointestinal(Creon,Duphalac,Dicetel),and wo

81、mens health(Duphaston,Femoston).And we continually employ local market insights to drive innovations in formulation,packaging,and new indications that help us better address regional health needs.DAGOBERTO LOPEZ BOGOT,COLOMBIAWhen he was diagnosed,in 2015,Dagobertos doctors told him his cancer had b

82、een caught early,and they started him on Abbotts ETERSA right away.Since that time,hes been feeling well.He believes thats because he received the drug before the disease had a significant impact on his health.Today,hes retired from work,so he likes to keep active,riding his bike,taking long walks,a

83、nd exercising in a park near his home.A B B OT T 2018 A N N UA L R E P O R T2 21,500 productsAbbotts continually expanding portfolio covers a range of therapeutic areas,including gastroenterology,womens health,cardiology,and metabolic disorders,as well as specialty and primary careA B B OT T 2018 A

84、N N UA L R E P O R T2 3BUILDING ON OUR LEADERSHIP IN LABORATORY TESTINGIn 2018,Abbott strengthened its position in diagnostics with the continued roll-out of Alinity,our groundbreaking range of instrument platforms,tests and services.As global testing volumes rise,health systems are facing increasin

85、g pressures to perform testing as efficiently as possible with limited staff and space.The Alinity family addresses these challenges with speed,accuracy,and a smaller footprint.Abbott is also working with hospitals to transform the lab by collaborating to find solutions that help deliver better care

86、 to patients.*Alinity hq,Alinity hs,Alinity m,and i-STAT Alinity are not yet commercially available in the United States for diagnostic use.Alinity m instrument is CE marked,assays are in development.Alinity s is not yet cleared for use in the United States and not authorized for sale in Canada.SAGH

87、AR MISSAGHIAN-CULLY LABORATORY ADMINISTRATOR,LONDON,ENGLANDGAME-CHANGING SOLUTIONS FOR DIAGNOSTICSA UNIFIED FAMILY OF INTEGRATED SYSTEMS DESIGNED TO STREAMLINE LABORATORY OPERATIONS AND HELP LABS ACHIEVE MEASURABLY BETTER PERFORMANCEALINITYclinical chemistryimmunoassayinformaticshematologypoint of c

88、aremoleculartransfusionBUILDING THE LAB OF THE FUTUREA B B OT T 2018 A N N UA L R E P O R T2 4In her role as Managing Director,for North West London Pathology,hosted by the Imperial College Healthcare NHS Trust in London,Saghar is charged with ensuring that the laboratories under her direction opera

89、te as efficiently as possible so they can deliver the critical information needed to help make optimal healthcare decisions.She relies on Abbotts systems to provide high-throughput analysis to deliver fast,accurate,and cost-efficient results.BLOOD SCREENING POINT-OF-CARE PORTFOLIO HIV TESTING INFECT

90、IOUS-DISEASE TESTING#1OF CRITICAL CLINICAL DECISIONS ARE INFLUENCED BY DIAGNOSTIC TEST RESULTS70%60%OF THE WORLDS DONATED BLOOD AND PLASMA IS SCREENED BY ABBOTT SYSTEMS AND TESTSA B B OT T 2018 A N N UA L R E P O R T2 5RAPID DIAGNOSTICS EXPANDING ACCESS TO CARE AROUND THE WORLDHIV STRIP TESTSOur com

91、plete portfolio of rapid HIV tests can help healthcare workers across the world diagnose individual infection,prevent mother-to-child transmission,and monitor HIV prevalence.Abbott is the worlds leading provider of rapid point-of-care tests,with a focus on cardiometabolic disease,infectious disease,

92、and toxicology.Our portable strip tests,along with our benchtop systems and analyzers,can provide immediate,actionable information,contributing to better clinical,operational,and economic outcomes.Key products in our Rapid Diagnostics portfolio include the ID NOW platform,which offers molecular-base

93、d tests for the influenza A&B viruses,as well as Strep A and Respiratory Syncytial Virus(RSV);the Afinion 2 platform,which provides a common series of cardiometabolic tests;and our eScreen business,which provides next-generation employment-screening applications to help companies ensure their employ

94、ees are healthy and drug-free.A B B OT T 2018 A N N UA L R E P O R T2 6THE KIKA TROUPE KAMPALA,UGANDAFounded by Kaddu Yusuf,an HIV orphan himself,the Kika Troupe is helping to change the narrative around HIV/AIDS in Uganda.Every member of the troupe has been impacted in some way by the countrys HIV

95、epidemic.Many of them are regularly tested using Abbotts rapid strip tests to help them stay as healthy as possible.2 7A B B OT T 2018 A N N UA L R E P O R TProper nutrition is the foundation of health.Thats why we develop science-based nutritional products to meet a variety of needs at every stage

96、of life.Our Ensure line of products provides complete,balanced,and targeted nutrition to help people stay active and healthy,as well as support recovery from illness,injury,or surgery.Glucerna shakes and bars are formulated for people with diabetes.Juven supports wound healing,including in those rec

97、overing from injury or surgery.Nepro is formulated for people with kidney disease.We also offer products for tube feeding,including Jevity for complete,balanced nutrition;Vital,for patients experiencing malabsorption,maldigestion,or impaired gastro-intestinal function;and Pivot,for metabolically str

98、essed patients who could benefit from an immune-modulating enteral formula.BALANCED AND TARGETED NUTRITION FOR ACTIVE LIVESA B B OT T 2018 A N N UA L R E P O R T2 8*Krok-Schoen,J et al:Low Dietary Protein Intakes and Associated Eating Behaviors in an Aging Population:a NHANES Analysis.ASPEN 2018 Nut

99、rition Science and Practice Conference.MAKEBA GILES ST.LOUIS,MISSOURI,USAMakeba is a lifestyle blogger and the busy mom of four kids.With a schedule as full as hers,she doesnt always have time to eat right.She often relies on Ensure Max Protein to provide the balanced nutrition she needs.ENSURE MAX

100、PROTEIN HELPS ADULTS STAY HEALTHY AND STRONG More than 1 in 3 adults over the age of 50 dont get the protein they need.*In 2018,Abbott introduced Ensure Max Protein,a 150-calorie nutrition drink with 30 grams of high-quality protein and 1 gram of sugar to help adults reach their health goals.ENSUREM

101、AX PROTEIN8 million peoplerely on Abbotts Adult and Medical Nutrition products every day#1WORLD LEADER IN ADULT NUTRITIONA B B OT T 2018 A N N UA L R E P O R T2 9A STRONG START FOR CHILDREN AROUND THE WORLDEvery day,11.5 million babies and children and their parents rely on Abbott nutrition products

102、.Our broad offering includes our line of Similac infant and toddler formulas,which support healthy growth and development;Pedialyte,our advanced rehydration solution specially formulated to help kids and adults replenish vital fluids and electrolytes;PediaSure,our complete,balanced nutritional drink

103、 designed with the optimal balance of protein,carbohydrates,vitamins and minerals;and Eleva,the leading organic infant formula in China.SIMILAC PRO-ADVANCE,PRO-SENSITIVE AND PRO-TOTAL COMFORTThe first infant formula with 2-FL Human Milk Oligosaccharide(HMO),an immune-nourishing prebioticKEY PRODUCT

104、LAUNCHESIN 201825#1We are the market leader in Pediatric Nutrition in the U.S.and many international marketsA B B OT T 2018 A N N UA L R E P O R T3 0Dr.Ortiz,a busy pediatric specialist,has three very active children.She has relied on Similac to help each of them grow and thrive.Today,she supplement

105、s her twins diet with Similac 3 to make sure theyre getting all the nutrition they need.DR.OLIVIA ORTIZ RAMIREZ WITH HER TWINS,DAMIN AND ANITAMEXICO CITY,MEXICO3 1A B B OT T 2018 A N N UA L R E P O R T33 Consolidated Statement of Earnings34 Consolidated Statement of Comprehensive Income35 Consolidat

106、ed Statement of Cash Flows36 Consolidated Balance Sheet38 Consolidated Statement of Shareholders Investment 39 Notes to Consolidated Financial Statements60 Management Report on Internal Control Over Financial Reporting60 Report of Independent Registered Public Accounting Firm61 Report of Independent

107、 Registered Public Accounting Firm62 Financial Instruments and Risk Management63 Financial Review77 Performance Graph78 Summary of Selected Financial Data79 Directors and Corporate Officers80 Shareholder and Corporate Information2018 FINANCIAL REPORTA B B OT T 2018 A N N UA L R E P O R T3 23 3A B B

108、O T T 2 0 1 8 A N N U A L R E P O R TYear Ended December 31201820172016Net Sales$30,578$27,390$20,853Cost of products sold,excluding amortization of intangible assets12,70612,4099,094Amortization of intangible assets2,1781,975550Research and development2,3002,2601,447Selling,general and administrati

109、ve9,7449,1826,736Total Operating Cost and Expenses26,92825,82617,827Operating Earnings3,6501,5643,026Interest expense826904431Interest income(105)(124)(99)Net foreign exchange(gain)loss28(34)495Debt extinguishment costs167Other(income)expense,net(139)(1,413)786Earnings from Continuing Operations Bef

110、ore Taxes2,8732,2311,413Taxes on Earnings from Continuing Operations5391,878350Earnings from Continuing Operations2,3343531,063Earnings from Discontinued Operations,net of taxes34124321Gain on sale of Discontinued Operations,net of taxes16Net Earnings from Discontinued Operations,net of taxes3412433

111、7Net Earnings$2,368$477$1,400Basic Earnings Per Common Share Continuing Operations$1.32$0.20$0.71Discontinued Operations0.020.070.23Net Earnings$1.34$0.27$0.94Diluted Earnings Per Common Share Continuing Operations$1.31$0.20$0.71Discontinued Operations0.020.070.23Net Earnings$1.33$0.27$0.94Average N

112、umber of Common Shares Outstanding Used for BasicEarnings Per Common Share1,7581,7401,477Dilutive Common Stock Options1296Average Number of Common Shares Outstanding Plus DilutiveCommon Stock Options1,7701,7491,483Outstanding Common Stock Options Having No Dilutive Effect5The accompanying notes to c

113、onsolidated financial statements are an integral part of this statement.CONSOLIDATED STATEMENT OF EARNINGS(in millions except per share data)1019241ab fin331019241ab fin1019241ab fin1019241ab fin333333K292503.04.2019 18:19PM8.500 in x 11.000 inkarenl(sa1)amoore1019241abAbbott Labs1019241ab finfile:/

114、 4A B B O T T 2 0 1 8 A N N U A L R E P O R TCONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME(in millions)Year Ended December 31201820172016Net Earnings$2,368$477$1,400Foreign currency translation gain(loss)adjustments(1,460)1,365(130)Net actuarial gains(losses)and prior service cost and credits and a

115、mortizationof net actuarial losses and prior service cost and credits,net of taxes of$47 in 2018,$(61)in 2017 and$(125)in 2016132(243)(326)Unrealized gains(losses)on marketable equity securities,net of taxes of$(76)in 2017 and$(28)in 201664(134)Net gains(losses)on derivative instruments designated a

116、s cash flow hedges,net of taxes of$50 in 2018,$(43)in 2017 and$(4)in 2016136(134)(15)Other Comprehensive Income(Loss)(1,192)1,052(605)Comprehensive Income$1,176$1,529$795Supplemental Accumulated Other Comprehensive Income(Loss)Information,net of tax as of December 31:Cumulative foreign currency tran

117、slation(loss)adjustments$(4,912)$(3,452)$(4,959)Net actuarial(losses)and prior service(cost)and credits(2,726)(2,521)(2,284)Cumulative unrealized gains(losses)on marketable equity securities(5)(69)Cumulative gains(losses)on derivative instruments designated ascash flow hedges52(84)49Accumulated othe

118、r comprehensive income(loss)$(7,586)$(6,062)$(7,263)The accompanying notes to consolidated financial statements are an integral part of this statement.1019241ab fin341019241ab fin1019241ab fin1019241ab fin343434K292503.04.2019 18:19PM8.500 in x 11.000 inkarenl(sa1)amoore1019241abAbbott Labs1019241ab

119、 finfile:/ 5A B B O T T 2 0 1 8 A N N U A L R E P O R TCONSOLIDATED STATEMENT OF CASH FLOWS(in millions)Year Ended December 31201820172016Cash Flow From(Used in)Operating Activities:Net earnings$2,368$477$1,400Adjustments to reconcile earnings to net cash from operating activities Depreciation1,1001

120、,046803Amortization of intangible assets2,1781,975550Share-based compensation477406310Impact of currency devaluation480Amortization of inventory step-up32907Investing and financing losses,net1264786Loss on extinguishment of debt167Amortization of bridge financing fees5165Gains on sale of businesses(

121、1,163)(25)Mylan N.V.equity investment adjustment947Gain on sale of Mylan N.V.shares(45)Trade receivables(190)(207)(177)Inventories(514)249(98)Prepaid expenses and other assets23109113Trade accounts payable and other liabilities747615(652)Income taxes(214)1,149(699)Net Cash From Operating Activities6

122、,3005,5703,203Cash Flow From(Used in)Investing Activities:Acquisitions of property and equipment(1,394)(1,135)(1,121)Acquisitions of businesses and technologies,net of cash acquired(17,183)(80)Proceeds from business dispositions486,04225Proceeds from the sale of Mylan N.V.shares2,704Purchases of inv

123、estment securities(131)(210)(2,823)Proceeds from sales of investment securities731293,709Other483542Net Cash From(Used in)Investing Activities(1,356)(9,618)(248)Cash Flow From(Used in)Financing Activities:Proceeds from issuance of(repayments of)short-term debt and other(26)(1,034)(1,767)Proceeds fro

124、m issuance of long-term debt and debt with maturitiesover 3 months4,0096,74214,934Repayments of long-term debt and debt with maturities over 3 months(12,433)(8,650)(12)Payment of bridge financing fees(170)Purchase of Alere preferred stock(710)Acquisition and contingent consideration payments related

125、 to businessacquisitions(13)(25)Purchases of common shares(238)(117)(522)Proceeds from stock options exercised271350248Dividends paid(1,974)(1,849)(1,539)Net Cash From(Used in)Financing Activities(10,391)(5,281)11,147Effect of exchange rate changes on cash and cash equivalents(116)116(483)Net Increa

126、se(Decrease)in Cash and Cash Equivalents(5,563)(9,213)13,619Cash and Cash Equivalents,Beginning of Year9,40718,6205,001Cash and Cash Equivalents,End of Year$3,844$9,407$18,620Supplemental Cash Flow Information:Income taxes paid$740$570$620Interest paid845917181The accompanying notes to consolidated

127、financial statements are an integral part of this statement.1019241ab fin351019241ab fin1019241ab fin1019241ab fin353535K292503.04.2019 18:19PM8.500 in x 11.000 inkarenl(sa1)amoore1019241abAbbott Labs1019241ab finfile:/ 6A B B O T T 2 0 1 8 A N N U A L R E P O R TDecember 3120182017AssetsCurrent Ass

128、ets:Cash and cash equivalents$3,844$9,407Investments,primarily bank time deposits and U.S.treasury bills242203Trade receivables,less allowances of 2018:$314;2017:$2945,1825,249Inventories:Finished products2,4072,339Work in process499472Materials890790Total inventories3,7963,601Other prepaid expenses

129、 and receivables1,5591,667Current assets held for disposition920Total Current Assets14,63220,147Investments897883Property and Equipment,at Cost:Land501526Buildings3,5553,613Equipment10,75610,394Construction in progress89473215,70615,265Less:accumulated depreciation and amortization8,1437,658Net Prop

130、erty and Equipment7,5637,607Intangible Assets,net of amortization18,94221,473Goodwill23,25424,020Deferred Income Taxes and Other Assets1,8681,944Non-current Assets Held for Disposition17176$67,173$76,250The accompanying notes to consolidated financial statements are an integral part of this statemen

131、t.CONSOLIDATED BALANCE SHEET(dollars in millions)1019241ab fin361019241ab fin1019241ab fin1019241ab fin363636K292503.04.2019 18:19PM8.500 in x 11.000 inkarenl(sa1)amoore1019241abAbbott Labs1019241ab finfile:/ 7A B B O T T 2 0 1 8 A N N U A L R E P O R TDecember 3120182017Liabilities and Shareholders

132、 InvestmentCurrent Liabilities:Short-term borrowings$200$206Trade accounts payable2,9752,402Salaries,wages and commissions1,1821,187Other accrued liabilities3,7803,811Dividends payable563489Income taxes payable305309Current portion of long-term debt7508Total Current Liabilities9,0128,912Long-term De

133、bt19,35927,210Post-employment obligations and other long-term liabilities8,0809,030Commitments and ContingenciesShareholders Investment:Preferred shares,one dollar par valueAuthorized 1,000,000 shares,none issuedCommon shares,without par valueAuthorized 2,400,000,000 sharesIssued at stated capital a

134、mount Shares:2018:1,971,189,465;2017:1,965,908,18823,51223,206Common shares held in treasury,at cost Shares:2018:215,570,043;2017:222,305,719(9,962)(10,225)Earnings employed in the business24,56023,978Accumulated other comprehensive income(loss)(7,586)(6,062)Total Abbott Shareholders Investment30,52

135、430,897Noncontrolling Interests in Subsidiaries198201Total Shareholders Investment30,72231,098$67,173$76,250The accompanying notes to consolidated financial statements are an integral part of this statement.CONSOLIDATED BALANCE SHEET(dollars in millions)1019241ab fin371019241ab fin1019241ab fin10192

136、41ab fin373737K292503.04.2019 18:19PM8.500 in x 11.000 inkarenl(sa1)amoore1019241abAbbott Labs1019241ab finfile:/ 8A B B O T T 2 0 1 8 A N N U A L R E P O R TYear Ended December 31201820172016Common Shares:Beginning of YearShares:2018:1,965,908,188;2017:1,707,475,455;2016:1,702,017,390$23,206$13,027

137、$12,734Issued under incentive stock programsShares:2018:5,281,277;2017:8,834,924;2016:5,458,065163242222Issued for St.Jude Medical acquisitionShares:2017:249,597,8099,835Share-based compensation479406311Issuance of restricted stock awards(336)(304)(240)End of YearShares:2018:1,971,189,465;2017:1,965

138、,908,188;2016:1,707,475,455$23,512$23,206$13,027Common Shares Held in Treasury:Beginning of YearShares:2018:222,305,719;2017:234,606,250;2016:229,352,338$(10,225)$(10,791)$(10,622)Issued under incentive stock programsShares:2018:8,870,735;2017:8,696,320;2016:5,398,469408400250Issued for St.Jude Medi

139、cal acquisitionShares:2017:3,906,848180PurchasedShares:2018:2,135,059;2017:302,637;2016:10,652,381(145)(14)(419)End of YearShares:2018:215,570,043;2017:222,305,719;2016:234,606,250$(9,962)$(10,225)$(10,791)Earnings Employed in the Business:Beginning of Year$23,978$25,565$25,757Net earnings2,3684771,

140、400Cash dividends declared on common shares(per share 2018:$1.16;2017:$1.075;2016:$1.045)(2,047)(1,947)(1,547)Effect of common and treasury share transactions(90)(117)(45)Impact of adoption of new accounting standards351End of Year$24,560$23,978$25,565Accumulated Other Comprehensive Income(Loss):Beg

141、inning of Year$(6,062)$(7,263)$(6,658)Business dispositions/separation149Other comprehensive income(loss)(1,192)1,052(605)Impact of adoption of new accounting standards(332)End of Year$(7,586)$(6,062)$(7,263)Noncontrolling Interests in Subsidiaries:Beginning of Year$201$179$115Noncontrolling Interes

142、ts share of income,business combinations,net of distributions and share repurchases(3)2264End of Year$198$201$179The accompanying notes to consolidated financial statements are an integral part of this statement.CONSOLIDATED STATEMENT OF SHAREHOLDERS INVESTMENT(in millions except shares and per shar

143、e data)1019241ab fin381019241ab fin1019241ab fin1019241ab fin383838K292503.04.2019 18:19PM8.500 in x 11.000 inkarenl(sa1)amoore1019241abAbbott Labs1019241ab finfile:/ 9A B B O T T 2 0 1 8 A N N U A L R E P O R TNOTES TO CONSOLIDATED FINANCIAL STATEMENTSNOTE 1SUMMARY OF SIGNIFICANT ACCOUNTING POLICIE

144、SNature of BusinessAbbotts principal business is the discovery,development,manufacture and sale of a broad line of health careproducts.Basis of ConsolidationThe consolidated financial statementsinclude the accounts of the parent company and subsidiaries,afterelimination of intercompany transactions.

145、Use of EstimatesThe consolidated financial statements have beenprepared in accordance with generally accepted accounting prin-ciples in the United States and necessarily include amounts basedon estimates and assumptions by management.Actual resultscould differ from those amounts.Significant estimate

146、s includeamounts for sales rebates;income taxes;pension and other post-employment benefits,including certain asset values that are basedon significant unobservable inputs;valuation of intangible assets;litigation;derivative financial instruments;and inventory andaccounts receivable exposures.Foreign

147、 Currency TranslationThe statements of earnings of for-eign subsidiaries whose functional currencies are other than theU.S.dollar are translated into U.S.dollars using average exchangerates for the period.The net assets of foreign subsidiaries whosefunctional currencies are other than the U.S.dollar

148、 are translatedinto U.S.dollars using exchange rates as of the balance sheet date.The U.S.dollar effects that arise from translating the net assets ofthese subsidiaries at changing rates are recorded in the foreigncurrency translation adjustment account,which is included inequity as a component of A

149、ccumulated other comprehensiveincome(loss).Transaction gains and losses are recorded on theNet foreign exchange(gain)loss line of the ConsolidatedStatement of Earnings.Revenue RecognitionRevenue from product sales is recognizedupon the transfer of control,which is generally upon shipment ordelivery,

150、depending on the delivery terms set forth in the customercontract.Provisions for discounts,rebates and sales incentives tocustomers,and returns and other adjustments are provided forinthe period the related sales are recorded.Sales incentives tocustomers are not material.Historical data is readily a

151、vailableandreliable,and is used for estimating the amount of the reduc-tion in gross sales.Revenue from the launch of a new product,from an improved version of an existing product,or for shipmentsin excess of a customers normal requirements are recorded whenthe conditions noted above are met.In thos

152、e situations,manage-ment records a returns reserve for such revenue,if necessary.Incertain of Abbotts businesses,primarily within diagnostics,Abbott participates in selling arrangements that include multipleperformance obligations(e.g.,instruments,reagents,procedures,and service agreements).The tota

153、l transaction price of the con-tract is allocated to each performance obligation in an amountbased on the estimated relative standalone selling prices of thepromised goods or services underlying each performance obliga-tion.Sales of product rights for marketable products are recordedas revenue upon

154、disposition of the rights.Income TaxesDeferred income taxes are provided for the taxeffect of differences between the tax bases of assets and liabilitiesand their reported amounts in the financial statements at theenacted statutory rate to be in effect when the taxes are paid.Noadditional income tax

155、es have been provided for any remainingundistributed foreign earnings not subject to the transition taxrelated to the U.S.Tax Cuts and Jobs Act,or any additional outsidebasis differences that exist,as these amounts continue to beindefinitely reinvested in foreign operations.Interest and penaltieson

156、income tax obligations are included in taxes on earnings.Earnings Per ShareUnvested restricted stock units and awardsthat contain non-forfeitable rights to dividends are treated asparticipating securities and are included in the computation ofearnings per share under the two-class method.Under the t

157、wo-class method,net earnings are allocated between common sharesand participating securities.Earnings from Continuing Operationsallocated to common shares in 2018,2017 and 2016 were$2.320 billion,$346million and$1.057billion,respectively.Netearnings allocated to common shares in 2018,2017 and 2016 w

158、ere$2.353 billion,$468million and$1.393billion,respectively.Pension and Post-Employment BenefitsAbbott accrues for theactuarially determined cost of pension and post-employmentbenefits over the service attribution periods of the employees.Abbott must develop long-term assumptions,the most significan

159、tof which are the health care cost trend rates,discount rates andthe expected return on plan assets.Differences between theexpected long-term return on plan assets and the actual returnareamortized over a five-year period.Actuarial losses and gainsare amortized over the remaining service attribution

160、 periods ofthe employees under the corridor method.Fair Value MeasurementsFor assets and liabilities that are mea-sured using quoted prices in active markets,total fair value is thepublished market price per unit multiplied by the number of unitsheld without consideration of transaction costs.Assets

161、 and liabili-ties that are measured using significant other observable inputs arevalued by reference to similar assets or liabilities,adjusted forcontract restrictions and other terms specific to that asset or liabil-ity.For these items,a significant portion of fair value is derived byreference to q

162、uoted prices of similar assets or liabilities in activemarkets.For all remaining assets and liabilities,fair value is derivedusing a fair value model,such as a discounted cash flow model orBlack-Scholes model.Purchased intangible assets are recorded atfair value.The fair value of significant purchas

163、ed intangible assetsis based on independent appraisals.Abbott uses a discounted cashflow model to value intangible assets.The discounted cash flowmodel requires assumptions about the timing and amount of futurenet cash flows,risk,the cost of capital,terminal values and marketparticipants.Intangible

164、assets are reviewed for impairment on aquarterly basis.Goodwill and indefinite-lived intangible assets aretested for impairment at least annually.Share-Based CompensationThe fair value of stock options andrestricted stock awards and units are amortized over their requi-site service period,which coul

165、d be shorter than the vesting periodif an employee is retirement eligible,with a charge to compensa-tion expense.In March 2016,theFinancialAccountingStandardsBoard(FASB)issuedAccountingStandardsUpdate(ASU)2016-09,Improvementsto Employee Share-Based Payment Accounting.ASU 2016-09 modi-fies several as

166、pects of the accounting for share-based paymenttransactions,including the accounting for income taxesandclassifi-cation on the statement of cash flows.Abbott adopted the standardin the first quarter of 2017 and the following changes were made tothe presentation of Abbotts financial statements:All ex

167、cess tax benefits or tax deficiencies are now recognized asincome tax benefit or expense as applicable.Previously,Abbottrecorded the benefits to Shareholders Investment.The taxbenefit recorded in Abbotts Consolidated Statement of Earningsfor 2018 and 2017 was$90 million and$120 million,respectively.

168、The standard did not permit retrospective presentation of thisbenefit in prior years.1019241ab fin391019241ab fin1019241ab fin1019241ab fin393939K292503.04.2019 18:19PM8.500 in x 11.000 inkarenl(sa1)amoore1019241abAbbott Labs1019241ab finfile:/ 0A B B O T T 2 0 1 8 A N N U A L R E P O R TNOTES TO CO

169、NSOLIDATED FINANCIAL STATEMENTS The tax benefit or deficiency is required to be classified as anoperating activity in the statement of cash flows.Previously,itwas required to be classified within financing activities.Abbotthas adopted this standard on a prospective basis and has notrevised the class

170、ification of the excess tax benefit in the 2016Consolidated Statement of Cash Flows.LitigationAbbott accounts for litigation losses in accordancewith FASB ASC No.450,“Contingencies.”Under ASC No.450,losscontingency provisions are recorded for probable losses atmanagements best estimate of a loss,or

171、when a best estimatecannot be made,a minimum loss contingency amount is recorded.Legal fees are recorded as incurred.Cash,Cash Equivalents and InvestmentsCash equivalents consistof bank time deposits,U.S.government securities money marketfunds and U.S.treasury bills with original maturities of three

172、months or less.Abbott holds certain investments with a carryingvalue of approximately$325million that are accounted for underthe equity method of accounting.Investments held in a rabbi trustand investments in publicly traded equity securities are recordedat fair value and changes in fair value are r

173、ecorded in earnings.Investments in equity securities that are not traded on public stockexchanges are recorded at cost minus impairment,if any,plus orminus changes resulting from observable price changes in orderlytransactions for identical or similar investments of the same issuer.Investments in de

174、bt securities are classified as held-to-maturity,asmanagement has both the intent and ability to hold these securi-ties to maturity,and are reported at cost,net of any unamortizedpremium or discount.Income relating to these securities isreported as interest income.Trade Receivable ValuationsAccounts

175、 receivable are stated attheir net realizable value.The allowance against gross tradereceivables reflects the best estimate of probable losses inherentinthe receivables portfolio determined on the basis of historicalexperience,specific allowances for known troubled accounts andother currently availa

176、ble information.Accounts receivable arecharged off after all reasonable means to collect the full amount(including litigation,where appropriate)have been exhausted.InventoriesInventories are stated at the lower of cost(first-in,first-out basis)or net realizable value.Cost includes materialandconvers

177、ion costs.Property and EquipmentDepreciation and amortization areprovided on a straight-line basis over the estimated useful livesofthe assets.The following table shows estimated useful livesofproperty and equipment:ClassificationEstimated Useful LivesBuildings10 to 50 years(average 27 years)Equipme

178、nt3 to 20 years(average 11 years)Product LiabilityAbbott accrues for product liability claimswhen it is probable that a liability has been incurred and theamount of the liability can be reasonably estimated based onexisting information.The liabilities are adjusted quarterly asadditional information

179、becomes available.Receivables for insur-ance recoveries for product liability claims are recorded as assets,on an undiscounted basis,when it is probable that a recovery willbe realized.Product liability losses are self-insured.Research and Development CostsInternal research and develop-ment costs ar

180、e expensed as incurred.Clinical trial costs incurredby third parties are expensed as the contracted work is per-formed.Where contingent milestone payments are due to thirdparties under research and development arrangements,the mile-stone payment obligations are expensed when the milestoneresults are

181、 achieved.Acquired In-Process and Collaborations Research and Development(IPR&D)The initial costs of rights to IPR&D projects obtained inan asset acquisition are expensed as IPR&D unless the project hasan alternative future use.These costs include initial paymentsincurred prior to regulatory approva

182、l in connection with researchand development collaboration agreements that provide rights todevelop,manufacture,market and/or sell pharmaceutical prod-ucts.The fair value of IPR&D projects acquired in a businesscombination are capitalized and accounted for as indefinite-livedintangible assets until

183、completed and are then amortized over theremaining useful life.Collaborations are not significant.Concentration of Risk and GuaranteesDue to the nature of itsoperations,Abbott is not subject to significant concentration risksrelating to customers,products or geographic locations.Productwarranties ar

184、e not significant.Abbott has no material exposures to off-balance sheet arrange-ments;no special purpose entities;nor activities that includenon-exchange-traded contracts accounted for at fair value.Abbotthas periodically entered into agreements in the ordinary course ofbusiness,such as assignment o

185、f product rights,with other compa-nies,which has resulted in Abbott becoming secondarily liable forobligations that Abbott was previously primarily liable.SinceAbbott no longer maintains a business relationship with the otherparties,Abbott is unable to develop an estimate of the maximumpotential amo

186、unt of future payments,if any,under these obliga-tions.Based upon past experience,the likelihood of paymentsunder these agreements is remote.Abbott periodically acquires abusiness or product rights in which Abbott agrees to pay contin-gent consideration based on attaining certain thresholds or based

187、on the occurrence of certain events.NOTE 2NEW ACCOUNTING STANDARDSRECENTLY ADOPTED ACCOUNTING STANDARDSInFebruary2018,theFASBissuedASU2018-02,ReclassificationofCertain Tax Effects from Accumulated Other ComprehensiveIncome,which allows companies to reclassify stranded tax effectsresulting from the 2

188、017 Tax Cuts and Jobs Act,from accumulatedother comprehensive income(loss)to retained earnings(Earningsemployed in the business).Abbott adopted the new standard at thebeginning of the fourth quarter of 2018.As a result of the adoptionof the new standard,approximately$337million of stranded taxeffect

189、s were reclassified from Accumulated other comprehensiveincome(loss)to Earnings employed in the business.InAugust2017,theFASBissuedASU2017-12,TargetedImprovementsto Accounting for Hedging Activities,which makes changes to thedesignation and measurement guidance for qualifying hedgingrelationships an

190、d the presentation of hedge results.The standardwould have become effective for Abbott beginning in the firstquarter of 2019,with early adoption permitted.Abbott elected toearly adopt ASU 2017-12 in the fourth quarter of 2018.The impact1019241ab fin401019241ab fin1019241ab fin1019241ab fin404040K292

191、503.04.2019 18:19PM8.500 in x 11.000 inkarenl(sa1)amoore1019241abAbbott Labs1019241ab finfile:/ B B O T T 2 0 1 8 A N N U A L R E P O R TNOTES TO CONSOLIDATED FINANCIAL STATEMENTSof adoptingthestandard is not significant to AbbottsConsolidatedBalance Sheet andConsolidatedStatement of Earnings.In Mar

192、ch 2017,the FASB issued ASU 2017-07,Compensation Retirement Benefits(Topic 715):Improving the Presentation of NetPeriodic Pension Cost and Net Periodic Postretirement Benefit Costwhich changes the financial statement presentation requirementsfor pension and other postretirement benefit expense.While

193、service cost continues to be reported in the same financial state-ment line items as other current employee compensation costs,theASU requires all other components of pension and other post-retirement benefit expense to be presented separately from servicecost,and outside any subtotal of income from

194、 operations.Thestandard was adopted by Abbott beginning in the first quarter of2018.The change in the presentation of the components of pen-sion cost per year was applied retrospectively.As a result,approximately$160million of net pension-related income peryear was moved from the operating lines of

195、the ConsolidatedStatement of Earnings to non-operating income for 2017 and 2016.In November 2016,the FASB issued ASU 2016-18,Statement ofCash Flows:Restricted Cash,which requires that restricted cashbeincluded with cash and cash equivalents when reconciling thebeginning and end-of-period total amoun

196、ts shown on the state-ment of cash flows.Abbott adopted this standard beginning in thefirst quarter of 2018,and applied the guidance retrospectively toall periods presented.Abbott did not have any restricted cashbalances in the periods presented except for$75 million ofrestricted cash acquired as pa

197、rt of the Alere Inc.(Alere)acquisi-tion in October 2017.The restrictions on this cash were eliminatedprior to the end of 2017.In October 2016,the FASB issued ASU 2016-16,Income Taxes(Topic 740):Intra-Entity Transfers of Assets Other Than Inventory,which requires the recognition of the income tax eff

198、ects of inter-company sales and transfers of assets,other than inventory,intheperiod in which the transfer occurs.Abbott adopted the stan-dard on January1,2018,using a modified retrospective approachand recorded a cumulative catch-up adjustment to Earningsemployed in the business in the Consolidated

199、 Balance Sheet thatwas not significant.In August 2016,the FASB issued ASU 2016-15,Statement of CashFlows:Classification of Certain Cash Receipts and Cash Payments,which clarifies how companies should present and classify certaincash receipts and cash payments in the statement of cash flows.The ASU b

200、ecame effective for Abbott in the first quarter of 2018and did not have a material impact to the Companys ConsolidatedStatement of Cash Flows.In January 2016,the FASB issued ASU 2016-01,FinancialInstruments Recognition and Measurement of Financial Assets andFinancial Liabilities,which provides new g

201、uidance for the recogni-tion,measurement,presentation,and disclosure of financial assetsand liabilities.Abbott adopted the standard on January 1,2018.Under the new standard,changes in the fair value of equity invest-ments with readily determinable fair values are recorded in Other(income)expense,net

202、 within the Consolidated Statement ofEarnings.Previously,such fair value changes were recorded inother comprehensive income.Abbott has elected the measurementalternative allowed by ASU 2016-01 for its equity investmentswithout readily determinable fair values.These investments aremeasured at cost,le

203、ss any impairment,plus or minus any changesresulting from observable price changes in orderly transactions foran identical or similar investment of the same issuer.Changes inthe measurement of these investments are being recorded in Other(income)expense,net within the Consolidated Statement ofEarnin

204、gs.As part of the adoption,the cumulative-effect adjustmentto Earnings employed in the business in the Consolidated BalanceSheet for net unrealized losses on equity investments that wererecorded in Accumulated other comprehensive income(loss)as ofDecember 31,2017 was not significant.InMay2014,theFAS

205、BissuedASU2014-09,RevenuefromContractswith Customers,which provides a single comprehensive model foraccounting for revenue from contracts with customers and super-sedes nearly all previously existing revenue recognition guidance.The core principle of the ASU is that an entity should recognizerevenue

206、 when it transfers promised goods or services to customersin an amount that reflects the consideration to which the entityexpectstobeentitledinexchangeforthosegoodsorservices.Abbottadopted the new standard as of January1,2018,using the modifiedretrospective approach method.Under this method,entities

207、 recog-nize the cumulative effect of applying the new standard at the dateof initial application with no restatement of comparative periodspresented.The cumulative effect ofapplying the new standardresulted in an increase to Earnings employed in the business in theConsolidated Balance Sheet of$23 mi

208、llion which was recorded onJanuary 1,2018.The new standard has been applied only to thosecontracts that were not completed as of January 1,2018.Theimpact of adopting ASU 2014-09 was not significant to individualfinancial statement lineitems in the Consolidated Balance Sheetand Consolidated Statement

209、 of Earnings.RECENT ACCOUNTING STANDARDS NOT YET ADOPTEDInFebruary 2016,the FASB issued ASU 2016-02,Leases,whichrequireslesseestorecognizeassetsandliabilities formost leases onthebalancesheet.Thestandardbecomes effectiveforAbbottbegin-ning inthefirstquarterof 2019.Abbottcompletedadetailed reviewofit

210、sleases.Abbottwill usethemodifiedretrospective approachwiththepackage of practical expedients whichallows Abbott tocarryforward the historical lease classification forleasesexisting at,orentered into after the beginningof the period of adoption and toaccount forleaseandnon-leasecomponents as asingle

211、leasecom-ponent foritslessee arrangements.Abbottdoesnotexpect the newlease accounting standardto haveamaterialimpacton theamountsreported intheConsolidated Statement of Earnings.Asaresult ofadoptingASU 2016-02,Abbottexpects to recordapproximately$800million to$900million of rightof useassets andleas

212、eliabili-ties for operating leasesontheConsolidated BalanceSheet.NOTE 3REVENUEAbbotts revenues are derived primarily from the sale of a broadline of health care products under short-term receivable arrange-ments.Patent protection and licenses,technological andperformance features,and inclusion of Ab

213、botts products under acontract most impact which products are sold;price controls,competition and rebates most impact the net selling prices ofproducts;and foreign currency translation impacts the measure-ment of net sales and costs.Abbotts products are generally solddirectly to retailers,wholesaler

214、s,distributors,hospitals,healthcare facilities,laboratories,physicians offices and governmentagencies throughout the world.Abbott has four reportable seg-ments:Established Pharmaceutical Products,Diagnostic Products,Nutritional Products,and Cardiovascular and NeuromodulationProducts.Diabetes Care is

215、 a non-reportable segment and isincluded in Other in the following table.1019241ab fin411019241ab fin1019241ab fin1019241ab fin414141K292503.04.2019 18:19PM8.500 in x 11.000 inkarenl(sa1)amoore1019241abAbbott Labs1019241ab finfile:/ B B O T T 2 0 1 8 A N N U A L R E P O R TNOTES TO CONSOLIDATED FINA

216、NCIAL STATEMENTSThe following tables provide detail by sales category:20182017(in millions)U.S.IntlTotalU.S.IntlTotalEstablished Pharmaceutical Products Key Emerging Markets$3,363$3,363$3,307$3,307Other1,0591,059980980Total4,4224,4224,2874,287Nutritionals Pediatric Nutritionals1,8432,2544,0971,7772,

217、1123,889Adult Nutritionals1,2321,9003,1321,2541,7823,036Total3,0754,1547,2293,0313,8946,925Diagnostics Core Laboratory9853,4014,3869213,1424,063Molecular152332484160303463Point of Care432121553440110550Rapid Diagnostics1,1489242,072296244540Total2,7174,7787,4951,8173,7995,616Cardiovascular and Neuro

218、modulation Rhythm Management1,0191,0722,0911,0301,0732,103Electrophysiology7649041,6686097731,382Heart Failure467179646491152643Vascular1,1261,8032,9291,1801,7122,892Structural Heart4887511,2394326511,083Neuromodulation690174864636172808Total4,5544,8839,4374,3784,5338,911Other4931,5021,9954471,2041,

219、651Total$10,839$19,739$30,578$9,673$17,717$27,390gross sales when Abbott records its sale of the product.Settlementof the rebate generally occurs from one to six months after sale.Abbott regularly analyzes the historical rebate trends and makesadjustments to reserves for changes in trends and terms

220、of rebateprograms.Historically,adjustments to prior years rebate accrualshave not been material to net income.Otherallowances chargedagainstgross salesinclude cash discountsand returns,which are not significant.Cash discounts are knownwithin 15 to 30 days of sale,and therefore can be reliably estima

221、ted.Returns can be reliably estimated because Abbotts historicalreturns are low,and because sales return terms and other salesterms have remained relatively unchanged for several periods.Product warranties are also not significant.Abbottalso applies judgmentindetermining thetiming of revenuerecognit

222、ion related to contracts that include multiple performanceobligations.Thetotaltransaction price of the contractisallocatedtoeach performanceobligation inanamountbased on theestimatedrelative standalonesellingpricesofthepromisedgoodsorservicesunderlying each performance obligation.Forgoodsorservicesf

223、orwhichobservable standalonesellingpricesare not available,Abbottuses an expectedcost plus a marginapproach to estimate the stand-alonesellingpriceofeach performance obligation.REMAINING PERFORMANCE OBLIGATIONSAs of December 31,2018,the estimated revenue expected to berecognized in the future relate

224、d to performance obligations thatare unsatisfied(or partially unsatisfied)was approximatelyAbbott recognizes revenue from product sales upon the transferof control,which is generally upon shipment or delivery,depend-ing on the delivery terms set forth in the customer contract.Formaintenance agreemen

225、ts that provide service beyond Abbottsstandard warranty and other service agreements,revenue isrecognized ratably over the contract term.A time-based measureof progress appropriately reflects the transfer of services to thecustomer.Payment terms between Abbott and its customers varyby the type of cu

226、stomer,country of sale,and the products orservices offered.The term between invoicing and the paymentdue date is not significant.Management exercises judgment in estimating variable consider-ation.Provisions for discounts,rebates and sales incentives tocustomers,and returns and other adjustments are

227、 provided for inthe period the related sales are recorded.Sales incentives to cus-tomers are not material.Historical data is readily available andreliable,and is used for estimating the amount of the reduction ingrosssales.Abbottprovides rebates to governmentagencies,whole-salers,group purchasing or

228、ganizations and other private entities.Rebate amounts are usually based upon the volume of purchasesusing contractual or statutory prices for a product.Factors usedinthe rebate calculations include the identification of whichproducts have been sold subject to a rebate,which customer orgovernment age

229、ncy price terms apply,and the estimated lag timebetween sale and payment of a rebate.Using historical trends,adjusted for current changes,Abbott estimates the amount of therebate that will be paid,and records the liability as a reduction of1019241ab fin421019241ab fin1019241ab fin1019241ab fin424242

230、K292503.04.2019 18:19PM8.500 in x 11.000 inkarenl(sa1)amoore1019241abAbbott Labs1019241ab finfile:/ 3A B B O T T 2 0 1 8 A N N U A L R E P O R TNOTES TO CONSOLIDATED FINANCIAL STATEMENTS$2.9billion in the Diagnostic Products segment and approxi-mately$410million in the Cardiovascular and Neuromodula

231、tionProducts segment.Abbott expects to recognize revenue onapproximately 60 percent of these remaining performanceobligations over the next 24 months,approximately 16 percentover the subsequent 12 months and the remainder thereafter.These performance obligations primarily reflect the future saleof r

232、eagents/consumables in contracts with minimum purchaseobligations,extended warranty or service obligations relatedto previously sold equipment,and remote monitoring servicesrelated to previously implanted devices.Abbott has applied thepractical expedient described in Accounting StandardsCodification

233、(ASC)606-10-50-14 and has not included remainingperformance obligations related to contracts with originalexpected durations of one year or less in the amounts above.ASSETS RECOGNIZED FOR COSTS TO OBTAIN A CONTRACTWITH A CUSTOMERAbbott has applied the practical expedient in ASC 340-40-25-4and record

234、s as an expense the incremental costs of obtainingcontracts with customers in the period of occurrence when theamortization period of the asset that Abbott otherwise wouldhaverecognized is one year or less.Upfront commission fees paidto sales personnel as a result of obtaining or renewing contractsw

235、ithcustomers are incremental to obtaining the contract.Abbottcapitalizes these amounts as contract costs.Capitalized commis-sion fees are amortized based on the contract duration to whichthe assets relate which ranges from two to ten years.The amountsas of December 31,2018,were not significant.Addit

236、ionally,the costoftransmittersprovided to customersthatuseAbbottsremotemonitoringservicewithrespect tocertain medicaldevices are capitalized as contract costs.Capitalized transmittercosts are amortized based on the timing of the transfer of servicesto which the assets relate,which typically ranges f

237、rom eight to tenyears.The amounts as of December 31,2018,were not significant.OTHER CONTRACT ASSETS AND LIABILITIESAbbott discloses Trade receivables separately in the ConsolidatedBalance Sheet at their net realizable value.Contract assets primar-ily relate to Abbotts conditional right to considerat

238、ion for workcompleted but not billed at the reporting date.Contract assets atthe beginning and end of the period,as well as the changes in thebalance,were not significant.Contract liabilities primarily relate to payments received fromcustomers in advance of performance under the contract.Abbottscont

239、ract liabilities arise primarily in the Cardiovascular andNeuromodulation reportable segment when payment is receivedupfront for various multi-period extended service arrangements.Changes in the contract liabilities during the period are as follows:(inmillions)Contract LiabilitiesBalance at January

240、1,2018$198Unearned revenue from cash received during the period304Revenue recognized that was included in contract liabilitybalance at beginning of period(243)Balance at December 31,2018$259NOTE 4DISCONTINUED OPERATIONS AND ASSETSHELD FOR DISPOSITIONOn February 27,2015,Abbott completed the sale of i

241、ts developedmarkets branded generics pharmaceuticals business to Mylan Inc.(Mylan)for 110million ordinary shares(or approximately22 percent)of a newly formed entity(Mylan N.V.)that combinedMylans existing business and Abbotts developed markets brandedgenerics pharmaceuticals business.In April 2015,A

242、bbott sold 40.25million of the 110 million ordi-nary shares of Mylan N.V.received in the sale of the developedmarkets branded generics pharmaceuticals business to Mylan.In2015,Abbott recorded a pretax gain of$207million on$2.29billion in net proceeds from the sale of these shares.In 2017,Abbott sold

243、 69.75million ordinary shares of Mylan N.V.andreceived$2.704billion in proceeds.Abbott recorded a$45 milliongain from the sale of these ordinary shares in 2017,which wasrecognized in the Other(income)expense,net line of theConsolidated Statement of Earnings.Abbott no longer has anownership interest

244、in Mylan N.V.On February 10,2015,Abbott completed the sale of its animalhealth business to Zoetis Inc.Abbott received cash proceeds of$230million and reported an after tax gain on the sale of approxi-mately$130million.In the first quarter of 2016,Abbott receivedan additional$25million of proceeds du

245、e to the expiration of aholdback agreement associated with the sale of this business andreported an after-tax gain of$16million.As a result of the disposition of the above businesses,the operat-ing results of these businesses up to the date of sale are reportedas part of discontinued operations on t

246、he Earnings fromDiscontinued Operations,net of taxes line in the ConsolidatedStatement of Earnings.On January 1,2013,Abbott completed the separation of AbbVieInc.(AbbVie),which was formed to hold Abbotts research-basedproprietary pharmaceuticals business.Abbott has retained allliabilities for all U.

247、S.federal and foreign income taxes on incomeprior to the separation,as well as certain non-income taxes attrib-utable to AbbVies business.AbbVie generally will be liable for allother taxes attributable to its business.The net earnings of discontinued operations include incometaxbenefits of$39million

248、 in 2018,$109million in 2017 and$325million in 2016.These tax benefits primarily relate to theresolution of various tax positions related to AbbVies operationsfor years prior to the separation.In September 2016,Abbott announced that it entered into adefinitive agreement to sell Abbott Medical Optics

249、(AMO),itsvision care business,to Johnson&Johnson for$4.325billion incash,subject to customary purchase price adjustments for cash,debt and working capital.The decision to sell AMO reflectedAbbotts proactive shaping of its portfolio in line with its strategicpriorities.In February 2017,Abbott complet

250、ed the sale of AMO toJohnson&Johnson and recognized a pre-tax gain of$1.163billionincluding working capital adjustments,which was reported in theOther(income)expense,net line of the Consolidated Statement ofEarnings in 2017.Abbott recorded an after-tax gain of$728millionin 2017 related to the sale o

251、f AMO.The operating results of AMOup to the date of sale continued to be included in Earnings from1019241ab fin431019241ab fin1019241ab fin1019241ab fin434343K292503.04.2019 18:19PM8.500 in x 11.000 inkarenl(sa1)amoore1019241abAbbott Labs1019241ab finfile:/ 4A B B O T T 2 0 1 8 A N N U A L R E P O R

252、 TNOTES TO CONSOLIDATED FINANCIAL STATEMENTScontinuing operations as the business did not qualify for reportingas discontinued operations.For 2017 and 2016,the AMO earnings(losses)before taxes included in Abbotts consolidated earningswere$(18)million and$30million,respectively.As discussed in Note 7

253、Business Acquisitions,in conjunctionwiththe acquisition of Alere,Abbott sold the Triage MeterProcardiovascular and toxicology business and the assets and liabili-ties related to its B-type Natriuretic Peptide assay business run onBeckman Coulter analyzers to Quidel Corporation(Quidel).Thelegal trans

254、fer of certain assets related to these businesses did notoccur at the close of the sale to Quidel due to,among other factors,the time required to transfer marketing authorizations and otherregulatory requirements in various countries.Under the terms ofthe sale agreement with Abbott,Quidel is subject

255、 to the risks andentitled to the benefits generated by these operations and assets.The assets presented as held for disposition in the ConsolidatedBalance Sheet as of December 31,2018 and 2017,primarily relatetothe businesses sold to Quidel.The following is a summary of the assets held for dispositi

256、on as ofDecember 31,2018 and 2017:(inmillions)December 3120182017Trade receivables,net$6$12Total inventories38Current assets held for disposition920Net property and equipment56Intangible assets,net of amortization18Goodwill17102Non-current assets held for disposition17176Total assets held for dispos

257、ition$26$196NOTE 5SUPPLEMENTAL FINANCIAL INFORMATIONOther(income)expense,net,for 2018,2017 and 2016 includesapproximately$160 million of income related to the non-servicecost components of the net periodic benefit costs associated withthe pension and post-retirement medical plans.These amountsarebei

258、ng reported in other(income)expense as a result of theadoption of the new accounting standard for recognizing pensioncost.Other(income)expense,net,for 2017 includes a pre-tax gainof$1.163billion related to the sale of AMO to Johnson&Johnson.See Note4 Discontinued Operations and Assets Held forDispos

259、ition for further discussion of this sale.In 2017,Abbottsold69.75million ordinary shares of Mylan N.V.and received$2.704billion in proceeds and recorded a$45million pre-tax gainrelated to the sale of these ordinary shares.Other(income)expense,net,for 2016 includes expense of$947million to adjustAbbo

260、tts holding of Mylan N.V.ordinary shares due to a declineinthe fair value of the securities which was considered byAbbottto be other than temporary.The detail of various balance sheet components is as follows:(inmillions)December 3120182017Long-term Investments:Equity securities$856$797Other4186Tota

261、l$897$883Abbottsequitysecuritiesasof December31,2018andDecember31,2017,include$307 million and$363million,respectively,of invest-ments in mutual funds that are held in a rabbi trust acquired aspart of the St.Jude Medical,Inc.(St.Jude Medical)businessacquisition.These investments,which are specifical

262、ly designatedas available for the purpose of paying benefits under a deferredcompensation 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 December 31,2018with a carrying value of approxim

263、ately$325 million that areaccounted for under the equity method of accounting and otherequity investments with a carrying value of$211 million that donot have a readily determinable fair value.The$211 million carry-ing value includes an unrealized gain of approximately$50 millionon an investment.The

264、 gain was recorded in the second quarter of2018 and relates to an observable price change for a similar invest-ment of the same issuer.(inmillions)December 3120182017Other Accrued Liabilities:Accrued rebates payable to government agencies$166$124Accrued other rebates(a)608498All other3,0063,189Total

265、$3,780$3,811(a)Accrued wholesaler chargeback rebates of$197million and$178million at December31,2018and2017,respectively,arenettedintradereceivablesbecauseAbbottscustomersareinvoicedat a highercatalog price but only remit to Abbott their contract price for the products.(inmillions)December 312018201

266、7Post-employment Obligations and Other Long-termLiabilities:Defined benefit pension plans and post-employmentmedicalanddentalplans forsignificantplans$2,040$2,169Deferred income taxes2,0562,006All other(b)3,9844,855Total$8,080$9,030(b)2018 includes approximately$465million of net unrecognized tax be

267、nefits,as well asapproximately$65million of acquisition consideration payable.2017 includes approxi-mately$835million of net unrecognized tax benefits,as well as approximately$100million of acquisition consideration payable.Since January 2010,Venezuela has been designated as a highlyinflationary eco

268、nomy under U.S.GAAP.On February 17,2016,theVenezuelan government announced that its three-tier exchangerate system would be reduced to two rates renamed the DIPROandDICOM rates.The DIPRO was the official rate for food andmedicine imports and was adjusted from 6.3 to 10 bolivars per U.S.dollar.The DI

269、COM rate was a floating market rate published dailyby the Venezuelan central bank,which at the end of the first quar-ter of 2016 was approximately 263 bolivars per U.S.dollar.As aresult of decreasing government approvals to convert bolivars toU.S.dollars to pay for intercompany accounts,as well as t

270、he accel-erating deterioration of economic conditions in the country,Abbottconcluded that it was appropriate to move to the DICOM rate atthe end of the first quarter of 2016.As a result,Abbott recorded aforeign currency exchange loss of$480million in 2016 to revalueits net monetary assets in Venezue

271、la.After the revaluation,Abbottsinvestment in its Venezuelan operations was not significant.1019241ab fin441019241ab fin1019241ab fin1019241ab fin444444K292503.04.2019 18:19PM8.500 in x 11.000 inkarenl(sa1)amoore1019241abAbbott Labs1019241ab finfile:/ 5A B B O T T 2 0 1 8 A N N U A L R E P O R TNOTE

272、S TO CONSOLIDATED FINANCIAL STATEMENTSNOTE 6ACCUMULATED OTHER COMPREHENSIVE INCOME(LOSS)The components of the changes in accumulated other comprehensive income(loss)from continuing operations,net of income taxes,areas follows:(inmillions)CumulativeForeign CurrencyTranslationAdjustmentsNet ActuarialL

273、osses and PriorService Costsand CreditsCumulativeUnrealizedGains(Losses)onMarketable EquitySecuritiesCumulative Gains(Losses)onDerivativeInstrumentsDesignated as CashFlow HedgesTotalBalance at December 31,2016$(4,959)$(2,284)$(69)$49$(7,263)Impact of business dispositions14261149Other comprehensive

274、income(loss)beforereclassifications1,365(333)182(170)1,044(Income)loss amounts reclassified from accumulatedother comprehensive income(a)90(118)368Net current period other comprehensive income(loss)1,365(243)64(134)1,052Balance at December 31,2017(3,452)(2,521)(5)(84)(6,062)Impact of adoption of new

275、 accounting standards(337)5(332)Other comprehensive income(loss)beforereclassifications(1,488)(18)58(1,448)(Income)loss amounts reclassified from accumulatedother comprehensive income(a)2815078256Net current period other comprehensive income(loss)(1,460)132136(1,192)Balance at December 31,2018$(4,91

276、2)$(2,726)$52$(7,586)(a)Reclassified amounts for foreign currency translation adjustments are recorded in the Consolidated Statement of Earnings as Net Foreign exchange(gain)loss;gains(losses)on marketableequity securities are recorded as Other(income)expense and gains/losses related to cash flow he

277、dges are recorded as Cost of products sold.Net actuarial losses and prior service cost isincluded as a component of net periodic benefit cost see Note 14 for additional information.NOTE 7BUSINESS ACQUISITIONSOn January 4,2017,Abbott completed the acquisition of St.JudeMedical,a global medical device

278、 manufacturer,for approximately$23.6billion,including approximately$13.6billion in cash andapproximately$10billion in Abbott common shares,which repre-sented approximately 254million shares of Abbott common stock,based on Abbotts closing stock price on the acquisition date.Aspart of the acquisition,

279、approximately$5.9 billion of St.JudeMedicals debt was assumed,repaid or refinanced by Abbott.Theacquisition provides expanded opportunities for future growthand is an important part of the companys ongoing effort todevelop a strong,diverse portfolio of devices,diagnostics,nutri-tionals and branded g

280、eneric pharmaceuticals.The combinedbusiness competes in nearly every area of the cardiovasculardevice market,as well as in the neuromodulation market.Under the terms of the agreement,for each St.Jude Medicalcommon share,St.Jude Medical shareholders received$46.75 incash and 0.8708 of an Abbott commo

281、n share.At an Abbott stockprice of$39.36,which reflects the closing price on January 4,2017,this represented a value of approximately$81 per St.Jude Medicalcommon share and total purchase consideration of$23.6billion.The cash portion of the acquisition was funded through a combi-nation of medium and

282、 long-term debt issued in November 2016and a$2.0billion 120-day senior unsecured bridge term loanfacility which was subsequently repaid.The final allocation of the fair value of the St.Jude Medical acqui-sition is shown in the table below.(inbillions)Acquired intangible assets,non-deductible$15.5Goo

283、dwill,non-deductible13.1Acquired net tangible assets3.0Deferred income taxes recorded at acquisition(2.7)Net debt(5.3)Total final allocation of fair value$23.6The goodwill is primarily attributable to expected synergiesfromcombining operations,as well as intangible assets that donotqualify for separ

284、ate recognition.The goodwill is identifiabletotheCardiovascular and Neuromodulation Products reportablesegment.The acquired tangible assets consist primarily of tradeaccounts receivable of approximately$1.1 billion,inventory ofapproximately$1.7billion,other current assets of$176million,property and

285、equipment of approximately$1.5billion,and otherlong-term assets of approximately$455million.The acquiredtangible liabilities consist of trade accounts payable and othercurrent liabilities of approximately$1.1billion and other non-current liabilities of approximately$870million.In 2016,Abbott and St.

286、Jude Medical agreed to sell certain busi-nesses to Terumo Corporation(Terumo)for approximately$1.12billion.The sale included the St.Jude Medical Angio-Sealand Femoseal vascular closure and Abbotts Vado SteerableSheath businesses.The sale closed on January 20,2017 and no gainor loss was recorded in t

287、he Consolidated Statement of Earnings.1019241ab fin451019241ab fin1019241ab fin1019241ab fin454545K292503.04.2019 18:19PM8.500 in x 11.000 inkarenl(sa1)amoore1019241abAbbott Labs1019241ab finfile:/ 6A B B O T T 2 0 1 8 A N N U A L R E P O R TNOTES TO CONSOLIDATED FINANCIAL STATEMENTSOn October 3,201

288、7,Abbott acquired Alere,a diagnostic deviceandservice provider,for$51.00 per common share in cash,whichequated to a purchase price of approximately$4.5billion.As partof the acquisition,Abbott tendered for Aleres preferred shares fora total value of approximately$0.7billion.In addition,approxi-mately

289、$3.0billion of Aleres debt was assumed and subsequentlyrepaid.The acquisition establishes Abbott as a leader in point ofcare testing,expands Abbotts global diagnostics presence andprovides access to new products,channels and geographies.Abbott utilized a combination of cash on hand and debt to fundt

290、he acquisition.See Note 11 Debt and Lines of Credit for furtherdetails regarding the debt utilized for the acquisition.The final allocation of the fair value of the Alere acquisition isshown in the table below.(in billions)Acquired intangible assets,non-deductible$3.5Goodwill,non-deductible3.7Acquir

291、ed net tangible assets1.0Deferred income taxes recorded at acquisition(0.4)Net debt(2.6)Preferred stock(0.7)Total final allocation of fair value$4.5The goodwill is primarily attributable to expected synergiesfromcombining operations,as well as intangible assets that donot qualify for separate recogn

292、ition.The goodwill is identifiableto the Diagnostic Products reportable segment.The approximatevalue of the acquired tangible assets is$430 million of tradeaccounts receivable,$425 million of inventory,$225million ofother current assets,$540 million of property and equipment,and$210 million of other

293、 long-term assets.The approximate value ofthe acquired tangible liabilities is$675million of trade accountspayable and other current liabilities and$145 million of othernon-current liabilities.In the third quarter of 2017,Alere entered into agreements to sellits Triage MeterPro cardiovascular and to

294、xicology business andthe assets and liabilities related to its B-type Natriuretic Peptideassay business run on Beckman Coulter analyzers to Quidel.Thetransactions with Quidel reflect a total purchase price of$400million payable at the close of the transaction,$240millionpayable in six annual install

295、ments beginning approximately sixmonths after the close of the transaction,and contingent consider-ation with a maximum value of$40million.In the third quarterof2017,Alere entered into an agreement with Siemens DiagnosticsHolding II B.V.(Siemens)to sell its subsidiary,Epocal Inc.,forapproximately$20

296、0 million payable at the close of the transaction.Alere agreed to divest these businesses in connection with thereview by the Federal Trade Commission and the EuropeanCommission of Abbotts agreement to acquire Alere.The sale toQuidel closed on October 6,2017,and the sale to Siemens closedon October

297、31,2017.No gain or loss on these sales was recordedinthe Consolidated Statement of Earnings.In 2017,consolidated Abbott results include$6.5billion of salesand a pre-tax loss of approximately$1.3billion related to theSt.Jude Medical and Alere acquisitions,including approximately$1.5billion of intangi

298、ble amortization and$907million of inven-tory step-up amortization.The pre-tax loss excludes acquisition,integration and restructuring-related costs.If the acquisitions of St.Jude Medical and Alere had occurred atthe beginning of 2016,unaudited pro forma consolidated net saleswould have been approxi

299、mately$28.9billion and the unauditedpro forma consolidated net loss from continuing operations wouldhave been approximately$485million in 2016.This includesamortization of approximately$940million of inventory step-upand$1.7billion of intangibles related to St.Jude Medical andAlere.For 2017,unaudite

300、d pro forma consolidated net sales wouldhave been approximately$28.9billion and unaudited pro formaconsolidated net earnings from continuing operations would havebeen approximately$750million,which includes$225million ofintangible amortization related to Alere.The unaudited pro formaconsolidated net

301、 earnings from continuing operations for 2017exclude inventory step-up amortization related to St.Jude Medicaland Alere of approximately$907million which was recorded in2017 but included in the 2016 unaudited pro forma results as notedabove.The unaudited pro forma information is not necessarilyindic

302、ative of the consolidated results of operations that wouldhave been realized had the St.Jude Medical and Alere acquisitionsbeen completed as of the beginning of 2016,nor is it meant to beindicative of future results of operations that the combined entitywill experience.On July 17,2017,Abbott commenc

303、ed a tender offer to purchaseforcash the 1.77million outstanding shares of Aleres Series BConvertible Perpetual Preferred Stock at a price of$402 per share,plus accrued but unpaid dividends to,but not including,the settle-ment date of the tender offer.This tender offer was subject to thesatisfaction

304、 of certain conditions,including Abbotts acquisitionofAlere and upon there being validly tendered(and not properlywithdrawn)at the expiration date of the tender offer that numberof shares of Preferred Stock that equaled at least a majority of thePreferred Stock issued and outstanding at the expirati

305、on of thetender offer.The tender offer expired on October 3,2017.All con-ditions to the offer were satisfied and Abbott accepted for paymentthe 1.748million shares of Preferred Stock that were validly ten-dered(and not properly withdrawn).The remaining shares werecashed out for an amount equal to th

306、e$400.00 per share liquida-tion preference of such shares,plus accrued but unpaid dividends,without interest.Payment for all of the shares of Preferred Stockwas made in the fourth quarter of 2017.NOTE 8GOODWILL AND INTANGIBLE ASSETSThe total amount of goodwill reported was$23.3billion atDecember 31,

307、2018 and$24.0billion at December 31,2017.Theamounts reported at December 31,2018 and 2017 exclude goodwillreported in non-current assets held for disposition.In 2018,foreigncurrency translation adjustments decreased goodwill by approxi-mately$440 million.Purchase price accounting adjustmentsassociat

308、ed with the Alere acquisition decreased goodwill by$326 million in 2018.Goodwill increased by$17.2 billion in 2017due to the completion of the St.Jude Medical and Alere acquisi-tions,partially offset by a decrease of$1.5 billion due to the sale ofcertain businesses to Terumo,Quidel and Siemens.Forei

309、gn cur-rency translation increased goodwill by$653 million in 2017.Theamount of goodwill related to reportable segments at December31,2018 was$3.0billion for the Established Pharmaceutical Productssegment,$286million for the Nutritional Products segment,$3.7billion for the Diagnostic Products segmen

310、t,and$15.3billionfor the Cardiovascular and Neuromodulation Products segment.In 2018 and 2017,there were no significant reductions of goodwillrelating to impairments.1019241ab fin461019241ab fin1019241ab fin1019241ab fin464646K292503.04.2019 18:19PM8.500 in x 11.000 inkarenl(sa1)amoore1019241abAbbot

311、t Labs1019241ab finfile:/ B B O T T 2 0 1 8 A N N U A L R E P O R TNOTES TO CONSOLIDATED FINANCIAL STATEMENTSThe gross amount of amortizable intangible assets,primarilyproduct rights and technology was$25.7billion and$25.6billionas of December31,2018 and 2017,respectively,and accumulatedamortization

312、 was$10.4billion and$8.1billion as of December31,2018 and 2017,respectively.In 2018,purchase price allocationadjustments increased intangible assets by$280 million andforeign currency translation adjustments decreased intangibleassets by$281 million.In 2017,the gross amount of amortizableintangible

313、assets increased by approximately$14.5 billion due tothe completion of the St.Jude Medical and Alere acquisitions,partially offset by a decrease of$210 million due to the sale ofcertain businesses to Quidel and Siemens.Indefinite-lived intangible assets,which relate to in-processresearch and develop

314、ment acquired in a business combination,were approximately$3.6billion and$3.9 billion at December31,2018 and 2017,respectively.The decrease in indefinite-lived intan-gible assets in 2018 primarily relates to purchase price allocationadjustments associated with the Alere acquisition.In 2017,in-proces

315、s research and development increased by$4.5billiondueto the completion of the St.Jude Medical and Alere acquisi-tions,a portion of which became amortizable during the year.In 2017,Abbott also recorded a$53million impairment of anin-process research and development project related to theCardiovascula

316、r and Neuromodulation Products segment.The estimated annual amortization expense for intangible assetsrecorded at December31,2018 is approximately$2.0billion in2019,$2.2billion in 2020,$2.1billion in 2021,$2.0billion in 2022and$2.0billion in 2023.Amortizable intangible assets are amor-tized over 2 t

317、o 20 years(weighted average 12 years).NOTE 9RESTRUCTURING PLANSIn 2017 and 2018,Abbott management approved restructuringplans as part of the integration of the acquisitions of St.JudeMedical into the Cardiovascular and Neuromodulation Productssegment,and Alere into the Diagnostic Products segment,in

318、order to leverage economies of scale and reduce costs.Abbottrecorded employee related severance and other charges ofapproximately$52 million in 2018 and$187 million in 2017.Approximately$5 million in 2018 and 2017 is recorded in Cost ofproducts sold,approximately$10 million in 2018 is recorded inRes

319、earch and development,and approximately$37 million in 2018and$182 million in 2017 are recorded in Selling,general andadministrative expense.Abbott also assumed restructuring liabili-ties of approximately$23 million as part of the St Jude Medicaland Alere acquisitions.The following summarizes the act

320、ivityrelated to these actions and the status of the related accruals:(inmillions)Liabilities assumed as part of business acquisitions$23Restructuring charges187Payments and other adjustments(142)Accrued balance at December 31,201768Restructuring charges52Payments and other adjustments(79)Accrued bal

321、ance at December 31,2018$41From 2016 to 2018,Abbott management approved plans to stream-line operations in order to reduce costs and improve efficiencies invarious Abbott businesses including the nutritional,establishedpharmaceuticals and vascular businesses.Abbott recordedemployee related severance

322、 and other charges of approximately$28 million in 2018,$120 million in 2017 and$32 million in 2016.Approximately$10 million in 2018,$7 million in 2017,and$9 million in 2016 are recorded in Cost of products sold,approxi-mately$2 million in 2018,$77 million in 2017 and$5 million in2016 are recorded in

323、 Research and development and approxi-mately$16 million in 2018,$36 million in 2017 and$18 million in2016 are recorded in Selling,general and administrative expense.Additional charges of approximately$2 million in 2017 and 2016were recorded primarily for accelerated depreciation.The following summar

324、izes the activity for these restructurings:(inmillions)Restructuring charges$32Payments and other adjustments(15)Accrued balance at December 31,201617Restructuring charges120Payments and other adjustments(18)Accrued balance at December 31,2017119Restructuring charges28Payments and other adjustments(

325、77)Accrued balance at December 31,2018$70NOTE 10 INCENTIVE STOCK PROGRAMThe 2017 Incentive Stock Program authorizes the granting ofnonqualified stock options,restricted stock awards,restrictedstock units,performance awards,foreign benefits and othershare-based awards.Stock options and restricted sto

326、ck awardsand units comprise the majority of benefits that have beengranted and are currently outstanding under this program and aprior program.In 2018,Abbott granted 5,760,221 stock options,871,331 restricted stock awards and 8,093,546 restricted stockunits under this program.Under Abbotts stock inc

327、entive programs,the purchase price ofshares under option must be at least equal to the fair market valueof the common stock on the date of grant,and the maximum termof an option is 10 years.Options generally vest equally over threeyears.Restricted stock awards generally vest over 3 years,with nomore

328、 than one-third of the award vesting in any one year uponAbbott reaching a minimum return on equity target.Restrictedstock units vest over three years and upon vesting,the recipientreceives one share of Abbott stock for each vested restricted stockunit.The aggregate fair market value of restricted s

329、tock awardsand units is recognized as expense over the requisite serviceperiod,which may be shorter than the vesting period if anemployee is retirement eligible.Forfeitures are estimated at thetime of grant.Restricted stock awards and settlement of vestedrestricted stock units are issued out of trea

330、sury shares.Abbottgenerally issues new shares for exercises of stock options.As apolicy,Abbott does not purchase its shares relating to its share-based programs.In April 2017,Abbotts shareholders authorized the 2017 IncentiveStock Program under which a maximum of 170million shareswere available for

331、issuance.At December 31,2018,approximately144million shares remained available for future issuance.1019241ab fin471019241ab fin1019241ab fin1019241ab fin474747K292503.04.2019 18:19PM8.500 in x 11.000 inkarenl(sa1)amoore1019241abAbbott Labs1019241ab finfile:/ 8A B B O T T 2 0 1 8 A N N U A L R E P O

332、R TNOTES TO CONSOLIDATED FINANCIAL STATEMENTSIn connection with the completion of the St.Jude Medicalacquisition in the first quarter of 2017,unvested St.Jude Medicalstock options and restricted stock units were assumed by Abbottand converted into Abbott options and restricted stock units(as applica

333、ble)of substantially equivalent value,in accordancewith the merger agreement.The number of shares underlyingthe converted options was 7,364,571 at a weighted averageexercise price of$30.50.The number of restricted stock unitsconverted was 2,324,500 at a weighted average grant date fairvalue of$37.69.The number of restricted stock awards and units outstanding andthe weighted-average grant-date fair