ABBOTT PARK, Ill., July 18, 2018
/PRNewswire/ -- Abbott (NYSE: ABT) today announced
financial results for the second quarter ended June 30, 2018.
- Second-quarter worldwide sales of $7.8
billion increased 17.0 percent on a reported basis and 8.0
percent on an organic* basis.
- Reported diluted EPS from continuing operations under GAAP was
$0.40 in the second quarter.
- Adjusted diluted EPS from continuing operations, which excludes
specified items, was $0.73, above
Abbott's previous guidance range.
- Abbott is raising its full-year 2018 EPS guidance range, which
continues to reflect strong double-digit growth. Abbott projects
full-year diluted EPS from continuing operations on a GAAP basis of
$1.34 to $1.40. Projected full-year adjusted diluted EPS
from continuing operations is now $2.85 to $2.91.
- In May, Abbott received approval from the U.S. FDA for XIENCE
Sierra™, the newest generation of its gold-standard
coronary stent system, which offers design and technology advances
to provide an easier implant and greater ability to treat complex
blockages. During the second quarter, XIENCE Sierra also received
national reimbursement in Japan to
treat people with coronary artery disease.
- In May, Abbott announced U.S. FDA clearance of
Advisor™ HD Grid Mapping Catheter, Sensor
Enabled™, which creates highly detailed maps of the
heart and expands Abbott's leading electrophysiology product
portfolio.
- In July, Abbott received U.S. FDA approval for a
next-generation version of its leading MitraClip® heart
valve repair device. This new version includes design advancements
that simplify the minimally invasive procedure and enable more
patients to be treated with MitraClip.
"All four of our businesses exceeded expectations and
contributed to strong growth overall," said Miles D. White, chairman and chief executive
officer, Abbott. "We forecast continued strong performance and are
raising our full-year outlook despite recent currency shifts."
* See note on organic growth below.
SECOND-QUARTER BUSINESS OVERVIEW
Note: Management
believes that measuring sales growth rates on an organic basis is
an appropriate way for investors to best understand the underlying
performance of the business.
Organic sales growth:
- Excludes prior year results for the Abbott Medical Optics
(AMO) and St. Jude Medical vascular closure businesses, which were
divested during the first quarter 2017;
- Excludes the current and prior year results for Rapid
Diagnostics, which reflect results for Alere Inc., which was
acquired on Oct. 3, 2017;
and
- Excludes the impact of foreign exchange.
Following are sales by business segment and commentary for
the second quarter and first half 2018:
Total
Company
|
($ in
millions)
|
|
|
|
|
|
|
|
|
% Change vs.
2Q17
|
|
Sales
2Q18
|
|
Reported
|
|
Organic
|
|
U.S.
|
|
Int'l
|
|
Total
|
|
U.S.
|
|
Int'l
|
|
Total
|
|
U.S.
|
|
Int'l
|
|
Total
|
Total
*
|
2,702
|
|
5,065
|
|
7,767
|
|
14.5
|
|
18.4
|
|
17.0
|
|
3.5
|
|
10.5
|
|
8.0
|
Nutrition
|
781
|
|
1,077
|
|
1,858
|
|
1.0
|
|
12.5
|
|
7.3
|
|
1.0
|
|
10.7
|
|
6.4
|
Diagnostics
|
652
|
|
1,221
|
|
1,873
|
|
69.1
|
|
37.6
|
|
47.2
|
|
2.2
|
|
8.5
|
|
6.6
|
Established
Pharmaceuticals
|
--
|
|
1,129
|
|
1,129
|
|
n/a
|
|
10.5
|
|
10.5
|
|
n/a
|
|
12.3
|
|
12.3
|
Medical
Devices
|
1,259
|
|
1,632
|
|
2,891
|
|
5.7
|
|
16.1
|
|
11.3
|
|
5.7
|
|
10.3
|
|
8.2
|
|
* Total 2018 Abbott
sales from continuing operations include Other Sales of $16
million.
|
|
|
|
|
|
|
|
% Change vs.
1H17
|
|
Sales
1H18
|
|
Reported
|
|
Organic
|
|
U.S.
|
|
Int'l
|
|
Total
|
|
U.S.
|
|
Int'l
|
|
Total
|
|
U.S.
|
|
Int'l
|
|
Total
|
Total
*
|
5,377
|
|
9,780
|
|
15,157
|
|
14.8
|
|
18.0
|
|
16.8
|
|
4.2
|
|
9.3
|
|
7.5
|
Nutrition
|
1,539
|
|
2,075
|
|
3,614
|
|
2.4
|
|
11.0
|
|
7.2
|
|
2.4
|
|
8.1
|
|
5.6
|
Diagnostics
|
1,352
|
|
2,358
|
|
3,710
|
|
78.9
|
|
40.8
|
|
52.6
|
|
2.0
|
|
7.9
|
|
6.1
|
Established
Pharmaceuticals
|
--
|
|
2,173
|
|
2,173
|
|
n/a
|
|
10.2
|
|
10.2
|
|
n/a
|
|
9.7
|
|
9.7
|
Medical
Devices
|
2,468
|
|
3,167
|
|
5,635
|
|
6.0
|
|
18.9
|
|
12.9
|
|
6.3
|
|
11.0
|
|
8.8
|
|
* Total 2018 Abbott
sales from continuing operations include Other Sales of $25
million.
|
|
n/a = Not
Applicable.
|
|
Note: In order to
compute results excluding the impact of exchange rates, current
year U.S. dollar sales are multiplied or divided, as appropriate,
by the current year average foreign exchange rates and then those
amounts are multiplied or divided, as appropriate, by the prior
year average foreign exchange rates.
|
Second-quarter 2018 worldwide sales of $7.8 billion increased 17.0 percent on a reported
basis. On an organic basis, worldwide sales increased 8.0 percent.
Refer to tables titled "Non-GAAP Reconciliation of Adjusted
Historical Revenue" for a reconciliation of adjusted historical
revenue.
Nutrition
|
($ in
millions)
|
|
|
|
|
|
|
|
|
% Change vs.
2Q17
|
|
Sales
2Q18
|
|
Reported
|
|
Organic
|
|
U.S.
|
|
Int'l
|
|
Total
|
|
U.S.
|
|
Int'l
|
|
Total
|
|
U.S.
|
|
Int'l
|
|
Total
|
Total
|
781
|
|
1,077
|
|
1,858
|
|
1.0
|
|
12.5
|
|
7.3
|
|
1.0
|
|
10.7
|
|
6.4
|
Pediatric
|
469
|
|
582
|
|
1,051
|
|
2.1
|
|
10.2
|
|
6.4
|
|
2.1
|
|
8.1
|
|
5.3
|
Adult
|
312
|
|
495
|
|
807
|
|
(0.7)
|
|
15.2
|
|
8.5
|
|
(0.7)
|
|
13.9
|
|
7.8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
% Change vs.
1H17
|
|
Sales
1H18
|
|
Reported
|
|
Organic
|
|
U.S.
|
|
Int'l
|
|
Total
|
|
U.S.
|
|
Int'l
|
|
Total
|
|
U.S.
|
|
Int'l
|
|
Total
|
Total
|
1,539
|
|
2,075
|
|
3,614
|
|
2.4
|
|
11.0
|
|
7.2
|
|
2.4
|
|
8.1
|
|
5.6
|
Pediatric
|
917
|
|
1,128
|
|
2,045
|
|
2.9
|
|
10.3
|
|
6.8
|
|
2.9
|
|
7.2
|
|
5.2
|
Adult
|
622
|
|
947
|
|
1,569
|
|
1.6
|
|
11.9
|
|
7.6
|
|
1.6
|
|
9.3
|
|
6.1
|
Worldwide Nutrition sales increased 7.3 percent on a reported
basis in the second quarter, including a favorable 0.9 percent
effect of foreign exchange, and increased 6.4 percent on an organic
basis.
Worldwide Pediatric Nutrition sales increased 6.4 percent on a
reported basis in the second quarter, including a favorable 1.1
percent effect of foreign exchange, and increased 5.3 percent on an
organic basis. International sales increased 10.2 percent on a
reported basis, including a favorable 2.1 percent effect of foreign
exchange, and increased 8.1 percent on an organic basis. Strong
performance in the quarter was led by growth in several countries
across Asia, including
Greater China, and Latin America.
Worldwide Adult Nutrition sales increased 8.5 percent on a
reported basis in the second quarter, including a favorable 0.7
percent effect of foreign exchange, and increased 7.8 percent on an
organic basis. International sales increased 15.2 percent on a
reported basis, including a favorable 1.3 percent effect of foreign
exchange, and increased 13.9 percent on an organic basis. Sales
performance was led by strong growth of Ensure®,
Abbott's market-leading complete and balanced nutrition brand, and
Glucerna®, Abbott's market-leading diabetes-specific
nutrition brand.
Diagnostics
|
($ in
millions)
|
|
|
|
|
|
|
|
|
% Change vs.
2Q17
|
|
Sales
2Q18
|
|
Reported
|
|
Organic
|
|
U.S.
|
|
Int'l
|
|
Total
|
|
U.S.
|
|
Int'l
|
|
Total
|
|
U.S.
|
|
Int'l
|
|
Total
|
Total
*
|
652
|
|
1,221
|
|
1,873
|
|
69.1
|
|
37.6
|
|
47.2
|
|
2.2
|
|
8.5
|
|
6.6
|
Core
Laboratory
|
248
|
|
880
|
|
1,128
|
|
6.8
|
|
11.7
|
|
10.6
|
|
6.8
|
|
7.9
|
|
7.7
|
Molecular
|
38
|
|
84
|
|
122
|
|
(7.3)
|
|
16.6
|
|
7.9
|
|
(7.3)
|
|
13.6
|
|
6.0
|
Point of
Care
|
108
|
|
31
|
|
139
|
|
(3.9)
|
|
12.0
|
|
(0.8)
|
|
(3.9)
|
|
9.7
|
|
(1.3)
|
Rapid Diagnostics
*
|
258
|
|
226
|
|
484
|
|
n/m
|
|
n/m
|
|
n/m
|
|
n/m
|
|
n/m
|
|
n/m
|
|
* Rapid Diagnostics
reflects sales from Alere Inc., which was acquired on Oct. 3, 2017.
Organic growth rates above exclude results from the Rapid
Diagnostics business.
|
|
|
|
|
|
|
|
% Change vs.
1H17
|
|
Sales
1H18
|
|
Reported
|
|
Organic
|
|
U.S.
|
|
Int'l
|
|
Total
|
|
U.S.
|
|
Int'l
|
|
Total
|
|
U.S.
|
|
Int'l
|
|
Total
|
Total
*
|
1,352
|
|
2,358
|
|
3,710
|
|
78.9
|
|
40.8
|
|
52.6
|
|
2.0
|
|
7.9
|
|
6.1
|
Core
Laboratory
|
476
|
|
1,671
|
|
2,147
|
|
6.2
|
|
12.7
|
|
11.2
|
|
6.2
|
|
7.3
|
|
7.0
|
Molecular
|
77
|
|
163
|
|
240
|
|
(10.7)
|
|
17.0
|
|
6.4
|
|
(10.7)
|
|
12.6
|
|
3.7
|
Point of
Care
|
218
|
|
62
|
|
280
|
|
(1.7)
|
|
17.3
|
|
1.9
|
|
(1.7)
|
|
14.0
|
|
1.3
|
Rapid Diagnostics
*
|
581
|
|
462
|
|
1,043
|
|
n/m
|
|
n/m
|
|
n/m
|
|
n/m
|
|
n/m
|
|
n/m
|
|
* Rapid Diagnostics
reflects sales from Alere Inc., which was acquired on Oct. 3, 2017.
Organic growth rates above exclude results from the Rapid
Diagnostics business.
|
|
n/m = Percent change
is not meaningful.
|
Worldwide Diagnostics sales increased 47.2 percent on a reported
basis in the second quarter. On an organic basis, sales increased
6.6 percent. Refer to tables titled "Non-GAAP Reconciliation of
Adjusted Historical Revenue" for a reconciliation of adjusted
historical revenue.
Core Laboratory Diagnostics sales increased 10.6 percent on a
reported basis in the second quarter, including a favorable 2.9
percent effect of foreign exchange, and increased 7.7 percent on an
organic basis. Growth in the quarter was driven by continued share
gains globally.
Molecular Diagnostics sales increased 7.9 percent on a reported
basis in the second quarter, including a favorable 1.9 percent
effect of foreign exchange, and increased 6.0 percent on an organic
basis. Worldwide sales were led by strong growth in infectious
disease testing, Abbott's core area of focus in the molecular
diagnostics market, which was partially offset by a planned scale
down in other testing areas, primarily in the U.S.
Point of Care Diagnostics sales decreased 0.8 percent on a
reported basis in the second quarter, including a favorable 0.5
percent effect of foreign exchange, and decreased 1.3 percent on an
organic basis.
Rapid Diagnostics worldwide sales of $484
million were led by infectious disease and cardiometabolic
testing.
Established
Pharmaceuticals
|
($ in
millions)
|
|
|
|
|
|
|
|
|
% Change vs.
2Q17
|
|
Sales
2Q18
|
|
Reported
|
|
Organic
|
|
U.S.
|
|
Int'l
|
|
Total
|
|
U.S.
|
|
Int'l
|
|
Total
|
|
U.S.
|
|
Int'l
|
|
Total
|
Total
|
--
|
|
1,129
|
|
1,129
|
|
n/a
|
|
10.5
|
|
10.5
|
|
n/a
|
|
12.3
|
|
12.3
|
Key Emerging
Markets
|
--
|
|
866
|
|
866
|
|
n/a
|
|
8.4
|
|
8.4
|
|
n/a
|
|
12.0
|
|
12.0
|
Other
|
--
|
|
263
|
|
263
|
|
n/a
|
|
17.9
|
|
17.9
|
|
n/a
|
|
13.6
|
|
13.6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
% Change vs.
1H17
|
|
Sales
1H18
|
|
Reported
|
|
Organic
|
|
U.S.
|
|
Int'l
|
|
Total
|
|
U.S.
|
|
Int'l
|
|
Total
|
|
U.S.
|
|
Int'l
|
|
Total
|
Total
|
--
|
|
2,173
|
|
2,173
|
|
n/a
|
|
10.2
|
|
10.2
|
|
n/a
|
|
9.7
|
|
9.7
|
Key Emerging
Markets
|
--
|
|
1,659
|
|
1,659
|
|
n/a
|
|
8.6
|
|
8.6
|
|
n/a
|
|
9.5
|
|
9.5
|
Other
|
--
|
|
514
|
|
514
|
|
n/a
|
|
15.9
|
|
15.9
|
|
n/a
|
|
10.1
|
|
10.1
|
Established Pharmaceuticals sales increased 10.5 percent on a
reported basis in the second quarter, including an unfavorable 1.8
percent effect of foreign exchange, and increased 12.3 percent on
an organic basis.
Key Emerging Markets comprise several countries that represent
the most attractive long-term growth opportunities for Abbott's
branded generics product portfolio. Sales in these geographies
increased 8.4 percent on a reported basis in the second quarter,
including an unfavorable 3.6 percent effect of foreign exchange,
and increased 12.0 percent on an organic basis. Sales growth was
led by double-digit growth across several geographies, including
India and China.
Medical
Devices
|
($ in
millions)
|
|
|
|
|
|
|
|
|
% Change vs.
2Q17
|
|
Sales
2Q18
|
|
Reported
|
|
Organic
|
|
U.S.
|
|
Int'l
|
|
Total
|
|
U.S.
|
|
Int'l
|
|
Total
|
|
U.S.
|
|
Int'l
|
|
Total
|
Total
|
1,259
|
|
1,632
|
|
2,891
|
|
5.7
|
|
16.1
|
|
11.3
|
|
5.7
|
|
10.3
|
|
8.2
|
Cardiovascular and
Neuromodulation
|
1,147
|
|
1,274
|
|
2,421
|
|
3.4
|
|
10.7
|
|
7.1
|
|
3.4
|
|
5.4
|
|
4.4
|
Rhythm
Management
|
262
|
|
281
|
|
543
|
|
(3.6)
|
|
0.5
|
|
(1.5)
|
|
(3.6)
|
|
(4.4)
|
|
(4.0)
|
Electrophysiology
|
193
|
|
235
|
|
428
|
|
25.0
|
|
24.6
|
|
24.8
|
|
25.0
|
|
18.7
|
|
21.6
|
Heart
Failure
|
117
|
|
46
|
|
163
|
|
(5.0)
|
|
27.6
|
|
2.4
|
|
(5.0)
|
|
21.4
|
|
1.0
|
Vascular
|
284
|
|
466
|
|
750
|
|
(3.8)
|
|
7.0
|
|
2.6
|
|
(3.8)
|
|
2.0
|
|
(0.3)
|
Structural
Heart
|
118
|
|
197
|
|
315
|
|
13.9
|
|
19.7
|
|
17.5
|
|
13.9
|
|
13.3
|
|
13.5
|
Neuromodulation
|
173
|
|
49
|
|
222
|
|
7.4
|
|
5.2
|
|
6.9
|
|
7.4
|
|
0.3
|
|
5.8
|
Diabetes
Care
|
112
|
|
358
|
|
470
|
|
37.6
|
|
40.5
|
|
39.8
|
|
37.6
|
|
32.4
|
|
33.6
|
|
|
|
|
|
|
|
|
|
% Change vs.
1H17
|
|
Sales
1H18
|
|
Reported
|
|
Organic
|
|
U.S.
|
|
Int'l
|
|
Total
|
|
U.S.
|
|
Int'l
|
|
Total
|
|
U.S.
|
|
Int'l
|
|
Total
|
Total
|
2,468
|
|
3,167
|
|
5,635
|
|
6.0
|
|
18.9
|
|
12.9
|
|
6.3
|
|
11.0
|
|
8.8
|
Cardiovascular and
Neuromodulation
|
2,270
|
|
2,474
|
|
4,744
|
|
4.6
|
|
12.9
|
|
8.7
|
|
4.9
|
|
5.6
|
|
5.3
|
Rhythm
Management
|
526
|
|
552
|
|
1,078
|
|
(1.2)
|
|
4.2
|
|
1.5
|
|
(1.2)
|
|
(2.9)
|
|
(2.1)
|
Electrophysiology
|
375
|
|
444
|
|
819
|
|
25.4
|
|
23.4
|
|
24.3
|
|
25.4
|
|
15.7
|
|
20.1
|
Heart
Failure
|
231
|
|
85
|
|
316
|
|
(0.6)
|
|
22.5
|
|
4.7
|
|
(0.6)
|
|
14.3
|
|
2.8
|
Vascular
|
570
|
|
919
|
|
1,489
|
|
(4.9)
|
|
10.2
|
|
3.9
|
|
(4.0)
|
|
3.9
|
|
0.6
|
Structural
Heart
|
227
|
|
381
|
|
608
|
|
7.8
|
|
21.5
|
|
16.0
|
|
7.8
|
|
12.4
|
|
10.6
|
Neuromodulation
|
341
|
|
93
|
|
434
|
|
14.8
|
|
8.8
|
|
13.5
|
|
14.8
|
|
1.1
|
|
11.8
|
Diabetes
Care
|
198
|
|
693
|
|
891
|
|
26.5
|
|
46.9
|
|
41.8
|
|
26.5
|
|
35.5
|
|
33.3
|
Worldwide Medical Devices sales increased 11.3 percent on a
reported basis in the second quarter. On an organic basis, sales
increased 8.2 percent. Refer to tables titled "Non-GAAP
Reconciliation of Adjusted Historical Revenue" for a reconciliation
of adjusted historical revenue.
Cardiovascular and Neuromodulation sales growth in the quarter
was led by double-digit growth in Electrophysiology and Structural
Heart.
In Electrophysiology, growth was led by strong performance in
cardiac mapping and ablation as well as share gains from the recent
U.S. launch of Abbott's Confirm Rx™ Insertable Cardiac
Monitor (ICM), the world's first and only smartphone-compatible ICM
designed to help physicians remotely identify cardiac arrhythmias.
In May, Abbott announced U.S. FDA clearance of Advisor HD Grid
Mapping Catheter, Sensor Enabled, which creates highly detailed
maps of the heart and expands Abbott's leading electrophysiology
product portfolio.
In Vascular, during the second quarter, Abbott received approval
from the U.S. FDA for XIENCE Sierra, the newest generation of its
gold-standard coronary stent system, which offers design and
technology advances to provide an easier implant and greater
ability to treat complex blockages. During the quarter, XIENCE
Sierra also received national reimbursement in Japan to treat people with coronary artery
disease.
Growth in Structural Heart was driven by several product areas
across Abbott's broad portfolio, including
AMPLATZER™ PFO Occluder and MitraClip, Abbott's
market-leading device for the minimally invasive treatment of
mitral regurgitation. In July, Abbott announced U.S. FDA approval
for a next-generation version of MitraClip, with an enhanced design
that provides even greater precision and accuracy.
In Diabetes Care, where sales increased 39.8 percent on a
reported basis and 33.6 percent on an organic basis, growth was led
by continued rapid market uptake of FreeStyle® Libre,
Abbott's revolutionary sensor-based continuous glucose monitoring
(CGM) system, which removes the need for routine
fingersticks1 for people with diabetes.
ABBOTT'S FULL-YEAR EARNINGS-PER-SHARE GUIDANCE
Abbott projects 2018 diluted earnings per share from continuing
operations under Generally Accepted Accounting Principles (GAAP) of
$1.34 to $1.40.
Abbott forecasts net specified items for the full year 2018 of
approximately $1.51 per share.
Specified items include intangible amortization expense,
acquisition-related expenses, charges associated with cost
reduction initiatives and other expenses.
Excluding specified items, projected adjusted diluted earnings
per share from continuing operations would be $2.85 to $2.91 for
the full year 2018.
Abbott is issuing third-quarter 2018 guidance for diluted
earnings per share from continuing operations under GAAP of
$0.32 to $0.34. Abbott forecasts specified items for the
third quarter 2018 of $0.41 primarily
related to intangible amortization, acquisition-related expenses,
cost reduction initiatives and other expenses. Excluding specified
items, projected adjusted diluted earnings per share from
continuing operations would be $0.73
to $0.75 for the third quarter.
ABBOTT DECLARES 378TH CONSECUTIVE QUARTERLY
DIVIDEND
On June 8, 2018, the board of
directors of Abbott declared the company's quarterly dividend of
$0.28 per share. Abbott's cash
dividend is payable Aug. 15, 2018, to
shareholders of record at the close of business on July 13, 2018.
Abbott has increased its dividend payout for 46 consecutive
years and is a member of the S&P 500 Dividend Aristocrats
Index, which tracks companies that have annually increased their
dividend for at least 25 consecutive years.
About Abbott:
Abbott is a global healthcare company devoted to improving life
through the development of products and technologies that span the
breadth of healthcare. With a portfolio of leading, science-based
offerings in diagnostics, medical devices, nutritionals and branded
generic pharmaceuticals, Abbott serves people in more than 150
countries and employs approximately 99,000 people.
Visit Abbott at www.abbott.com and connect with us on Twitter at
@AbbottNews.
Abbott will webcast its live second-quarter earnings conference
call through its Investor Relations website at
www.abbottinvestor.com at 8 a.m. Central
time today. An archived edition of the webcast will be
available later that day.
— Private Securities Litigation Reform
Act of 1995 —
A Caution Concerning Forward-Looking
Statements
Some statements in this news release may be forward-looking
statements for purposes of the Private Securities Litigation Reform
Act of 1995. Abbott cautions that these forward-looking statements
are subject to risks and uncertainties that may cause actual
results to differ materially from those indicated in the
forward-looking statements. Economic, competitive, governmental,
technological and other factors that may affect Abbott's operations
are discussed in Item 1A, "Risk Factors'' to our Annual Report on
Securities and Exchange Commission Form 10-K for the year ended
Dec. 31, 2017, and are incorporated
by reference. Abbott undertakes no obligation to release publicly
any revisions to forward-looking statements as a result of
subsequent events or developments, except as required by
law.
1
Fingersticks are required for treatment decisions when you see
Check Blood Glucose symbol, when symptoms do not match system
readings, when you suspect readings may be inaccurate, or when you
experience symptoms that may be due to high or low blood
glucose.
|
Abbott Laboratories
and Subsidiaries
|
Condensed
Consolidated Statement of Earnings
|
Second Quarter Ended
June 30, 2018 and 2017
|
(in millions, except
per share data)
|
(unaudited)
|
|
|
2Q18
|
|
2Q17
|
|
%
Change
|
|
Net Sales
|
$7,767
|
|
$6,637
|
|
17.0
|
|
|
|
|
|
|
|
|
Cost of products
sold, excluding amortization expense
|
3,282
|
|
3,189
|
|
2.9
|
|
Amortization of
intangible assets
|
562
|
|
392
|
|
43.2
|
|
Research and
development
|
575
|
|
520
|
|
10.5
|
|
Selling, general, and
administrative
|
2,466
|
|
2,150
|
|
14.7
|
|
Total Operating Cost
and Expenses
|
6,885
|
|
6,251
|
|
10.1
|
|
|
|
|
|
|
|
|
Operating
earnings
|
882
|
|
386
|
|
n/m
|
1)
|
|
|
|
|
|
|
|
Interest expense,
net
|
189
|
|
183
|
|
2.7
|
|
Net foreign exchange
(gain)
|
(6)
|
|
(12)
|
|
(50.7)
|
|
Other (income)
expense, net
|
(78)
|
|
(80)
|
|
(3.1)
|
1)
|
Earnings from
Continuing Operations before taxes
|
777
|
|
295
|
|
n/m
|
|
|
|
|
|
|
|
|
Tax expense on
Earnings from Continuing Operations
|
59
|
|
25
|
|
n/m
|
|
Earnings from
Continuing Operations
|
718
|
|
270
|
|
n/m
|
|
|
|
|
|
|
|
|
Earnings from
Discontinued Operations, net of taxes
|
15
|
|
13
|
|
19.1
|
|
|
|
|
|
|
|
|
Net
Earnings
|
$733
|
|
$283
|
|
n/m
|
|
|
|
|
|
|
|
|
Earnings from
Continuing Operations, excluding
|
|
|
|
|
|
|
Specified Items, as
described below
|
$1,295
|
|
$1,096
|
|
18.1
|
2)
|
|
|
|
|
|
|
|
Diluted Earnings per
Common Share from:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Continuing
Operations
|
$0.40
|
|
$0.15
|
|
n/m
|
|
|
|
|
|
|
|
|
Discontinued
Operations
|
0.01
|
|
0.01
|
|
n/m
|
|
|
|
|
|
|
|
|
Total
|
$0.41
|
|
$0.16
|
|
n/m
|
|
|
|
|
|
|
|
|
Diluted Earnings per
Common Share from Continuing
|
|
|
|
|
|
|
Operations, excluding
Specified Items, as described below
|
$0.73
|
|
$0.62
|
|
17.7
|
2)
|
|
|
|
|
|
|
|
Average Number of
Common Shares Outstanding
|
|
|
|
|
|
|
Plus Dilutive Common
Stock Options
|
1,769
|
|
1,749
|
|
|
|
|
NOTES:
|
|
See
tables titled "Non-GAAP Reconciliation of Financial
Information From Continuing Operations" for an explanation of
certain non-GAAP financial information.
|
n/m = Percent change
is not meaningful.
|
See footnotes
below.
|
|
1)
|
Effective January 1,
2018, Abbott adopted Accounting Standards Update 2017-07,
Compensation – Retirement Benefits (Topic 715): Improving the
Presentation of Net Periodic Pension Cost and Net Periodic
Postretirement Benefit Cost, which resulted in a retrospective
reclassification of approximately $40 million of net
pension-related income from Operating earnings to Other (income)
expense, net for the second quarter of 2017.
|
|
|
2)
|
2018 Net Earnings and
Diluted Earnings per Common Share from Continuing Operations,
excluding Specified Items, excludes net after-tax charges of $577
million, or $0.33 per share, for intangible amortization expense
and other expenses primarily associated with acquisitions and
restructuring actions.
|
|
|
|
2017 Net Earnings and
Diluted Earnings per Common Share from Continuing Operations,
excluding Specified Items, excludes net after-tax charges of $826
million, or $0.47 per share, for intangible amortization expense
and other expenses primarily associated with acquisitions and
restructuring actions.
|
Abbott Laboratories
and Subsidiaries
|
Condensed
Consolidated Statement of Earnings
|
First Half Ended June
30, 2018 and 2017
|
(in millions, except
per share data)
|
(unaudited)
|
|
|
1H18
|
|
1H17
|
|
%
Change
|
|
Net Sales
|
$15,157
|
|
$12,972
|
|
16.8
|
|
|
|
|
|
|
|
|
Cost of products
sold, excluding amortization expense
|
6,349
|
|
6,251
|
|
1.6
|
|
Amortization of
intangible assets
|
1,146
|
|
914
|
|
25.4
|
|
Research and
development
|
1,164
|
|
1,073
|
|
8.4
|
|
Selling, general, and
administrative
|
5,008
|
|
4,590
|
|
9.1
|
|
Total Operating Cost
and Expenses
|
13,667
|
|
12,828
|
|
6.5
|
|
|
|
|
|
|
|
|
Operating
earnings
|
1,490
|
|
144
|
|
n/m
|
1)
|
|
|
|
|
|
|
|
Interest expense,
net
|
388
|
|
387
|
|
0.1
|
|
Net foreign exchange
(gain)
|
(9)
|
|
(28)
|
|
(66.5)
|
|
Debt extinguishment
costs
|
14
|
|
--
|
|
n/m
|
|
Other (income)
expense, net
|
(111)
|
|
(1,246)
|
|
(91.1)
|
1) 2)
|
Earnings from
Continuing Operations before taxes
|
1,208
|
|
1,031
|
|
17.2
|
|
|
|
|
|
|
|
|
Tax expense on
Earnings from Continuing Operations
|
81
|
|
375
|
|
(78.4)
|
3)
|
Earnings from
Continuing Operations
|
1,127
|
|
656
|
|
71.8
|
|
|
|
|
|
|
|
|
Earnings from
Discontinued Operations, net of taxes
|
24
|
|
46
|
|
(49.5)
|
4)
|
|
|
|
|
|
|
|
Net
Earnings
|
$1,151
|
|
$702
|
|
63.9
|
|
|
|
|
|
|
|
|
Earnings from
Continuing Operations, excluding
|
|
|
|
|
|
|
Specified Items, as
described below
|
$2,345
|
|
$1,939
|
|
20.9
|
5)
|
|
|
|
|
|
|
|
Diluted Earnings per
Common Share from:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Continuing
Operations
|
$0.63
|
|
$0.37
|
|
70.3
|
|
|
|
|
|
|
|
|
Discontinued
Operations
|
0.01
|
|
0.03
|
|
(66.7)
|
4)
|
|
|
|
|
|
|
|
Total
|
$0.64
|
|
$0.40
|
|
60.0
|
|
|
|
|
|
|
|
|
Diluted Earnings per
Common Share from Continuing
|
|
|
|
|
|
|
Operations, excluding
Specified Items, as described below
|
$1.32
|
|
$1.11
|
|
18.9
|
5)
|
|
|
|
|
|
|
|
Average Number of
Common Shares Outstanding
|
|
|
|
|
|
|
Plus Dilutive Common
Stock Options
|
1,767
|
|
1,742
|
|
|
|
|
NOTES:
|
|
|
See
tables titled "Non-GAAP Reconciliation of Financial
Information From Continuing Operations" for an explanation of
certain non-GAAP financial information.
|
n/m = Percent change
is not meaningful.
|
See footnotes
below.
|
|
|
1)
|
Effective January 1,
2018, Abbott adopted Accounting Standards Update 2017-07,
Compensation – Retirement Benefits (Topic 715): Improving the
Presentation of Net Periodic Pension Cost and Net Periodic
Postretirement Benefit Cost, which resulted in a retrospective
reclassification of approximately $80 million of net
pension-related income from Operating earnings to Other (income)
expense, net for the first half of 2017.
|
|
|
2)
|
2017 Other (income)
expense, net includes a pretax gain of $1.151 billion from the sale
of the AMO business.
|
|
|
3)
|
2018 Tax expense on
Earnings from Continuing Operations includes the impact of
approximately $71 million in excess tax benefits associated with
share-based compensation.
|
|
|
|
2017 Tax expense on
Earnings from Continuing Operations includes the tax associated
with a $1.151 billion pretax gain on the sale of the AMO
business.
|
|
|
4)
|
2018 and 2017
Earnings and Diluted Earnings per Common Share from Discontinued
Operations, net of taxes primarily relates to a net tax benefit as
a result of the resolution of various tax positions from prior
years.
|
|
|
5)
|
2018 Net Earnings and
Diluted Earnings per Common Share from Continuing Operations,
excluding Specified Items, excludes net after-tax charges of $1.218
billion, or $0.69 per share, for intangible amortization expense
and other expenses primarily associated with acquisitions and
restructuring actions.
|
|
|
|
2017 Net Earnings and
Diluted Earnings per Common Share from Continuing Operations,
excluding Specified Items, excludes net after-tax charges of $1.283
billion, or $0.74 per share, for intangible amortization expense
and other expenses primarily associated with acquisitions and
restructuring actions, partially offset by a gain on the sale of
the AMO business.
|
Abbott Laboratories
and Subsidiaries
|
Non-GAAP
Reconciliation of Financial Information From Continuing
Operations
|
Second Quarter Ended
June 30, 2018 and 2017
|
(in millions, except
per share data)
|
(unaudited)
|
|
|
2Q18
|
|
As
Reported
(GAAP)
|
|
Specified
Items
|
|
As
Adjusted
|
|
% to
Sales
|
|
|
|
|
|
|
|
|
Intangible
Amortization
|
$562
|
|
$(562)
|
|
--
|
|
|
Gross
Margin
|
3,923
|
|
677
|
|
$4,600
|
|
59.2%
|
R&D
|
575
|
|
(24)
|
|
551
|
|
7.1%
|
SG&A
|
2,466
|
|
(79)
|
|
2,387
|
|
30.7%
|
Interest expense,
net
|
189
|
|
(2)
|
|
187
|
|
|
Other (income)
expense, net
|
(78)
|
|
44
|
|
(34)
|
|
|
Earnings from
Continuing Operations before taxes
|
777
|
|
738
|
|
1,515
|
|
|
Tax expense on
Earnings from Continuing Operations
|
59
|
|
161
|
|
220
|
|
|
Earnings from
Continuing Operations
|
718
|
|
577
|
|
1,295
|
|
|
Diluted Earnings per
Share from Continuing Operations
|
$0.40
|
|
$0.33
|
|
$0.73
|
|
|
Specified items reflect intangible amortization expense of
$562 million and other expenses of
$176 million, primarily associated
with acquisitions, restructuring actions and other expenses.
See tables titled "Details of Specified Items" for
additional details regarding specified items.
|
2Q17
|
|
As
Reported
(GAAP)
|
|
Specified
Items
|
|
As
Adjusted
|
|
% to
Sales
|
|
|
|
|
|
|
|
|
Intangible
Amortization
|
$392
|
|
$(392)
|
|
--
|
|
|
Gross
Margin
|
3,056
|
|
895
|
|
$3,951
|
|
59.5%
|
R&D
|
520
|
|
(15)
|
|
505
|
|
7.6%
|
SG&A
|
2,150
|
|
(138)
|
|
2,012
|
|
30.3%
|
Interest expense,
net
|
183
|
|
(2)
|
|
181
|
|
|
Other (income)
expense, net
|
(80)
|
|
32
|
|
(48)
|
|
|
Earnings from
Continuing Operations before taxes
|
295
|
|
1,018
|
|
1,313
|
|
|
Tax expense on
Earnings from Continuing Operations
|
25
|
|
192
|
|
217
|
|
|
Earnings from
Continuing Operations
|
270
|
|
826
|
|
1,096
|
|
|
Diluted Earnings per
Share from Continuing Operations
|
$0.15
|
|
$0.47
|
|
$0.62
|
|
|
|
Note: The As Reported
and As Adjusted amounts reflect the impact of adopting the new
accounting rules related to the recognition of retirement benefits
– See Footnote 1 on table titled "Condensed Consolidated Statement
of Earnings" for additional information.
|
Specified items reflect intangible amortization expense of
$392 million and other expenses of
$626 million, primarily associated
with acquisitions, including approximately $430 million of inventory step-up amortization
related to St. Jude Medical and other expenses. See tables titled
"Details of Specified Items" for additional details regarding
specified items.
Abbott Laboratories
and Subsidiaries
|
Non-GAAP
Reconciliation of Financial Information From Continuing
Operations
|
First Half Ended June
30, 2018 and 2017
|
(in millions, except
per share data)
|
(unaudited)
|
|
|
1H18
|
|
As
Reported
(GAAP)
|
|
Specified
Items
|
|
As
Adjusted
|
|
% to
Sales
|
|
|
|
|
|
|
|
|
Intangible
Amortization
|
$1,146
|
|
$(1,146)
|
|
--
|
|
|
Gross
Margin
|
7,662
|
|
1,324
|
|
$8,986
|
|
59.3%
|
R&D
|
1,164
|
|
(67)
|
|
1,097
|
|
7.2%
|
SG&A
|
5,008
|
|
(169)
|
|
4,839
|
|
31.9%
|
Interest expense,
net
|
388
|
|
(2)
|
|
386
|
|
|
Net foreign exchange
(gain) loss
|
(9)
|
|
(1)
|
|
(10)
|
|
|
Debt extinguishment
costs
|
14
|
|
(14)
|
|
--
|
|
|
Other (income)
expense, net
|
(111)
|
|
42
|
|
(69)
|
|
|
Earnings from
Continuing Operations before taxes
|
1,208
|
|
1,535
|
|
2,743
|
|
|
Tax expense on
Earnings from Continuing Operations
|
81
|
|
317
|
|
398
|
|
|
Earnings from
Continuing Operations
|
1,127
|
|
1,218
|
|
2,345
|
|
|
Diluted Earnings per
Share from Continuing Operations
|
$0.63
|
|
$0.69
|
|
$1.32
|
|
|
Specified items reflect intangible amortization expense of
$1.146 billion and other expenses of
$389 million, primarily associated
with acquisitions, restructuring actions and other expenses. See
tables titled "Details of Specified Items" for additional details
regarding specified items.
|
1H17
|
|
As
Reported
(GAAP)
|
|
Specified
Items
|
|
As
Adjusted
|
|
% to
Sales
|
|
|
|
|
|
|
|
|
Intangible
Amortization
|
$914
|
|
$(914)
|
|
--
|
|
|
Gross
Margin
|
5,807
|
|
1,879
|
|
$7,686
|
|
59.2%
|
R&D
|
1,073
|
|
(55)
|
|
1,018
|
|
7.8%
|
SG&A
|
4,590
|
|
(505)
|
|
4,085
|
|
31.5%
|
Interest expense,
net
|
387
|
|
(19)
|
|
368
|
|
|
Other (income)
expense, net
|
(1,246)
|
|
1,166
|
|
(80)
|
|
|
Earnings from
Continuing Operations before taxes
|
1,031
|
|
1,292
|
|
2,323
|
|
|
Tax expense on
Earnings from Continuing Operations
|
375
|
|
9
|
|
384
|
|
|
Earnings from
Continuing Operations
|
656
|
|
1,283
|
|
1,939
|
|
|
Diluted Earnings per
Share from Continuing Operations
|
$0.37
|
|
$0.74
|
|
$1.11
|
|
|
|
Note: The As Reported
and As Adjusted amounts reflect the impact of adopting the new
accounting rules related to the recognition of retirement benefits
– See Footnote 1 on table titled "Condensed Consolidated Statement
of Earnings" for additional information.
|
Specified items reflect intangible amortization expense of
$914 million and other expenses of
$1.529 billion, primarily associated
with acquisitions, including approximately $820 million of inventory step-up amortization
related to St. Jude Medical, charges related to restructuring
actions and other expenses, partially offset by a gain of
$1.151 billion from the sale of the
AMO business. See tables titled "Details of Specified Items" for
additional details regarding specified items.
A reconciliation of the second-quarter tax rates for continuing
operations for 2018 and 2017 is shown below:
|
2Q18
|
|
($ in
millions)
|
Pre-Tax
Income
|
|
Taxes on
Earnings
|
|
Tax
Rate
|
|
As reported
(GAAP)
|
$777
|
|
$59
|
|
7.7%
|
|
Specified
items
|
738
|
|
161
|
|
|
|
Excluding
specified items
|
$1,515
|
|
$220
|
|
14.5%
|
|
|
|
|
|
|
|
|
|
2Q17
|
|
($ in
millions)
|
Pre-Tax
Income
|
|
Taxes on
Earnings
|
|
Tax
Rate
|
|
As reported
(GAAP)
|
$295
|
|
$25
|
|
8.4%
|
1)
|
Specified
items
|
1,018
|
|
192
|
|
|
|
Excluding
specified items
|
$1,313
|
|
$217
|
|
16.5%
|
|
|
|
1)
|
Reported tax rate on
a GAAP basis for the second quarter of 2017 includes the impact of
approximately $25 million in excess tax benefits associated with
share-based compensation.
|
A reconciliation of the year-to-date tax rates for continuing
operations for 2018 and 2017 is shown below:
|
1H18
|
|
($ in
millions)
|
Pre-Tax
Income
|
|
Taxes on
Earnings
|
|
Tax
Rate
|
|
As reported
(GAAP)
|
$1,208
|
|
$81
|
|
6.7%
|
2)
|
Specified
items
|
1,535
|
|
317
|
|
|
|
Excluding
specified items
|
$2,743
|
|
$398
|
|
14.5%
|
|
|
|
|
|
|
|
|
|
1H17
|
|
($ in
millions)
|
Pre-Tax
Income
|
|
Taxes on
Earnings
|
|
Tax
Rate
|
|
As reported
(GAAP)
|
$1,031
|
|
$375
|
|
36.4%
|
3)
|
Specified
items
|
1,292
|
|
9
|
|
|
|
Excluding
specified items
|
$2,323
|
|
$384
|
|
16.5%
|
|
|
|
2)
|
Reported tax rate on
a GAAP basis for 2018 includes the impact of approximately $71
million in excess tax benefits associated with share-based
compensation.
|
3)
|
Reported tax rate on
a GAAP basis for 2017 includes the impact of taxes associated with
a $1.151 billion pretax gain on the sale of the AMO
business.
|
Abbott Laboratories
and Subsidiaries
|
Non-GAAP
Reconciliation of Adjusted Historical Revenue
|
Second Quarter Ended
June 30, 2018 and 2017
|
($ in millions)
(unaudited)
|
|
|
2Q18
|
|
2Q17
|
|
% Change vs.
2Q17
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP
|
|
Abbott
Reported
|
|
Rapid
Diagnostics
|
|
Adjusted
Revenue
|
|
Abbott
Reported
|
|
Reported
|
|
Reported
|
|
Organica)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
Company
|
7,767
|
|
(484)
|
|
7,283
|
|
6,637
|
|
17.0
|
|
9.7
|
|
8.0
|
U.S.
|
2,702
|
|
(258)
|
|
2,444
|
|
2,360
|
|
14.5
|
|
3.5
|
|
3.5
|
Int'l
|
5,065
|
|
(226)
|
|
4,839
|
|
4,277
|
|
18.4
|
|
13.1
|
|
10.5
|
Total
Diagnostics
|
1,873
|
|
(484)
|
|
1,389
|
|
1,273
|
|
47.2
|
|
9.1
|
|
6.6
|
U.S.
|
652
|
|
(258)
|
|
394
|
|
385
|
|
69.1
|
|
2.2
|
|
2.2
|
Int'l
|
1,221
|
|
(226)
|
|
995
|
|
888
|
|
37.6
|
|
12.1
|
|
8.5
|
Rapid
Diagnostics
|
484
|
|
(484)
|
|
--
|
|
--
|
|
n/m
|
|
n/m
|
|
n/m
|
U.S.
|
258
|
|
(258)
|
|
--
|
|
--
|
|
n/m
|
|
n/m
|
|
n/m
|
Int'l
|
226
|
|
(226)
|
|
--
|
|
--
|
|
n/m
|
|
n/m
|
|
n/m
|
|
a) In order to
compute results excluding the impact of exchange rates, current
year U.S. dollar sales are multiplied or divided, as appropriate,
by the current year average foreign exchange rates and then those
amounts are multiplied or divided, as appropriate, by the prior
year average foreign exchange rates.
|
Abbott Laboratories
and Subsidiaries
|
Non-GAAP
Reconciliation of Adjusted Historical Revenue
|
First Half Ended June
30, 2018 and 2017
|
($ in millions)
(unaudited)
|
|
|
1H18
|
|
1H17
|
|
% Change vs.
1H17
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP
|
|
Abbott
Reported
|
|
Rapid
Diagnostics
|
|
Adjusted
Revenue
|
|
Abbott
Reported
|
|
Divested
Businessesa)
|
|
Adjusted
Revenue
|
|
Reported
|
|
Reported
|
|
Organicb)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
Company
|
15,157
|
|
(1,043)
|
|
14,114
|
|
12,972
|
|
(187)
|
|
12,785
|
|
16.8
|
|
10.4
|
|
7.5
|
U.S.
|
5,377
|
|
(581)
|
|
4,796
|
|
4,684
|
|
(84)
|
|
4,600
|
|
14.8
|
|
4.2
|
|
4.2
|
Int'l
|
9,780
|
|
(462)
|
|
9,318
|
|
8,288
|
|
(103)
|
|
8,185
|
|
18.0
|
|
13.8
|
|
9.3
|
Total
Diagnostics
|
3,710
|
|
(1,043)
|
|
2,667
|
|
2,431
|
|
--
|
|
2,431
|
|
52.6
|
|
9.7
|
|
6.1
|
U.S.
|
1,352
|
|
(581)
|
|
771
|
|
756
|
|
--
|
|
756
|
|
78.9
|
|
2.0
|
|
2.0
|
Int'l
|
2,358
|
|
(462)
|
|
1,896
|
|
1,675
|
|
--
|
|
1,675
|
|
40.8
|
|
13.2
|
|
7.9
|
Rapid
Diagnostics
|
1,043
|
|
(1,043)
|
|
--
|
|
--
|
|
--
|
|
--
|
|
n/m
|
|
n/m
|
|
n/m
|
U.S.
|
581
|
|
(581)
|
|
--
|
|
--
|
|
--
|
|
--
|
|
n/m
|
|
n/m
|
|
n/m
|
Int'l
|
462
|
|
(462)
|
|
--
|
|
--
|
|
--
|
|
--
|
|
n/m
|
|
n/m
|
|
n/m
|
Total Medical
Devices
|
5,635
|
|
--
|
|
5,635
|
|
4,991
|
|
(12)
|
|
4,979
|
|
12.9
|
|
13.2
|
|
8.8
|
U.S.
|
2,468
|
|
--
|
|
2,468
|
|
2,327
|
|
(6)
|
|
2,321
|
|
6.0
|
|
6.3
|
|
6.3
|
Int'l
|
3,167
|
|
--
|
|
3,167
|
|
2,664
|
|
(6)
|
|
2,658
|
|
18.9
|
|
19.1
|
|
11.0
|
Cardiovascular and
Neuromodulation
|
4,744
|
|
--
|
|
4,744
|
|
4,363
|
|
(12)
|
|
4,351
|
|
8.7
|
|
9.0
|
|
5.3
|
U.S.
|
2,270
|
|
--
|
|
2,270
|
|
2,171
|
|
(6)
|
|
2,165
|
|
4.6
|
|
4.9
|
|
4.9
|
Int'l
|
2,474
|
|
--
|
|
2,474
|
|
2,192
|
|
(6)
|
|
2,186
|
|
12.9
|
|
13.1
|
|
5.6
|
Vascular
|
1,489
|
|
--
|
|
1,489
|
|
1,434
|
|
(12)
|
|
1,422
|
|
3.9
|
|
4.7
|
|
0.6
|
U.S.
|
570
|
|
--
|
|
570
|
|
599
|
|
(6)
|
|
593
|
|
(4.9)
|
|
(4.0)
|
|
(4.0)
|
Int'l
|
919
|
|
--
|
|
919
|
|
835
|
|
(6)
|
|
829
|
|
10.2
|
|
10.9
|
|
3.9
|
|
a) Reflects sales
related to the AMO and St. Jude Medical vascular closure businesses
prior to divesting in the first quarter 2017.
|
b) In order to
compute results excluding the impact of exchange rates, current
year U.S. dollar sales are multiplied or divided, as appropriate,
by the current year average foreign exchange rates and then those
amounts are multiplied or divided, as appropriate, by the prior
year average foreign exchange rates.
|
Abbott Laboratories
and Subsidiaries
|
Details of Specified
Items
|
Second Quarter Ended
June 30, 2018
|
(in millions, except
per share data)
|
(unaudited)
|
|
|
Acquisition or
Divestiture-
related (a)
|
|
Restructuring
and Cost
Reduction
Initiatives (b)
|
|
Intangible
Amortization
|
|
Other (c)
|
|
Total
Specifieds
|
Gross
Margin
|
$
37
|
|
$
78
|
|
$
562
|
|
$
--
|
|
$
677
|
R&D
|
(5)
|
|
(1)
|
|
--
|
|
(18)
|
|
(24)
|
SG&A
|
(75)
|
|
(4)
|
|
--
|
|
--
|
|
(79)
|
Interest expense,
net
|
--
|
|
--
|
|
--
|
|
(2)
|
|
(2)
|
Other (income)
expense, net
|
(5)
|
|
--
|
|
--
|
|
49
|
|
44
|
Earnings from
Continuing Operations before taxes
|
$
122
|
|
$
83
|
|
$
562
|
|
$
(29)
|
|
738
|
Tax expense on
Earnings from Continuing Operations (d)
|
|
|
|
|
|
|
|
|
161
|
Earnings from
Continuing Operations
|
|
|
|
|
|
|
|
|
$
577
|
Diluted Earnings per
Share from Continuing Operations
|
|
|
|
|
|
|
|
|
$
0.33
|
|
The table above
provides additional details regarding the specified items described
on tables titled "Non-GAAP Reconciliation of Financial
Information From Continuing Operations."
|
|
|
a)
|
Acquisition-related
expenses include costs for legal, accounting, tax, and other
services related to business acquisitions, integration costs which
represent incremental costs directly related to integrating the
acquired businesses and include expenditures for consulting,
retention, severance, and the integration of systems, processes and
business activities, and fair value adjustments to contingent
consideration related to a business acquisition.
|
b)
|
Restructuring and
cost reduction initiative expenses include severance, outplacement,
inventory write-downs, asset impairments, accelerated depreciation,
and other direct costs associated with specific restructuring plans
and cost reduction initiatives. Restructuring and cost reduction
plans consist of distinct initiatives to streamline operations
including the consolidation and rationalization of business
activities and facilities, workforce reductions, the transfer of
product lines between manufacturing facilities, and the transfer of
other business activities between sites.
|
c)
|
Other (income)
expense, net relates to an increase in fair value of an investment,
partially offset by the acquisition of an R&D asset.
|
d)
|
Reflects the net tax
benefit associated with the specified items and excess tax benefits
associated with share-based compensation.
|
Abbott Laboratories
and Subsidiaries
|
Details of Specified
Items
|
Second Quarter Ended
June 30, 2017
|
(in millions, except
per share data)
|
(unaudited)
|
|
|
Acquisition or
Divestiture-
related (a)
|
|
Restructuring
and Cost
Reduction
Initiatives (b)
|
|
Intangible
Amortization
|
|
Total
Specifieds
|
Gross
Margin
|
$
438
|
|
$
65
|
|
$
392
|
|
$
895
|
R&D
|
(12)
|
|
(3)
|
|
--
|
|
(15)
|
SG&A
|
(134)
|
|
(4)
|
|
--
|
|
(138)
|
Interest expense,
net
|
(2)
|
|
--
|
|
--
|
|
(2)
|
Other (income)
expense, net
|
32
|
|
--
|
|
--
|
|
32
|
Earnings from
Continuing Operations before taxes
|
$
554
|
|
$
72
|
|
$
392
|
|
1,018
|
Tax expense on
Earnings from Continuing Operations (c)
|
|
|
|
|
|
|
192
|
Earnings from
Continuing Operations
|
|
|
|
|
|
|
$
826
|
Diluted Earnings per
Share from Continuing Operations
|
|
|
|
|
|
|
$
0.47
|
|
The table above
provides additional details regarding the specified items described
on tables titled "Non-GAAP Reconciliation of Financial
Information From Continuing Operations."
|
|
|
a)
|
Acquisition-related
expenses include costs for legal, accounting, tax, and other
services related to business acquisitions and integration costs
which represent incremental costs directly related to integrating
the acquired businesses and include expenditures for consulting,
retention, severance, and the integration of systems, processes and
business activities, fair value adjustments to contingent
consideration related to a business acquisition, and inventory
step-up amortization. The specified items in interest expense
include amortization expense associated with acquisition-related
bridge facility fees. Divestiture-related expenses include
incremental costs to separate the divested businesses.
|
b)
|
Restructuring and
cost reduction initiative expenses include severance, outplacement,
inventory write-downs, asset impairments, accelerated depreciation,
and other direct costs associated with specific restructuring plans
and cost reduction initiatives. Restructuring and cost reduction
plans consist of distinct initiatives to streamline operations
including the consolidation and rationalization of business
activities and facilities, workforce reductions, the transfer of
product lines between manufacturing facilities, and the transfer of
other business activities between sites. Any gains related to the
divestiture of a facility as part of a restructuring program are
also included in this category.
|
c)
|
Reflects the net tax
benefit associated with the specified items and excess tax benefits
associated with share-based compensation.
|
Abbott Laboratories
and Subsidiaries
|
Details of Specified
Items
|
First Half Ended June
30, 2018
|
(in millions, except
per share data)
|
(unaudited)
|
|
|
Acquisition or
Divestiture-
related (a)
|
|
Restructuring
and Cost
Reduction
Initiatives (b)
|
|
Intangible
Amortization
|
|
Other (c)
|
|
Total
Specifieds
|
Gross
Margin
|
$
82
|
|
$
96
|
|
$
1,146
|
|
$
--
|
|
$
1,324
|
R&D
|
(21)
|
|
(3)
|
|
--
|
|
(43)
|
|
(67)
|
SG&A
|
(161)
|
|
(8)
|
|
--
|
|
--
|
|
(169)
|
Interest expense,
net
|
--
|
|
--
|
|
--
|
|
(2)
|
|
(2)
|
Net foreign exchange
(gain) loss
|
--
|
|
(1)
|
|
--
|
|
--
|
|
(1)
|
Debt extinguishment
costs
|
--
|
|
--
|
|
--
|
|
(14)
|
|
(14)
|
Other (income)
expense, net
|
(7)
|
|
--
|
|
--
|
|
49
|
|
42
|
Earnings from
Continuing Operations before taxes
|
$
271
|
|
$
108
|
|
$
1,146
|
|
$
10
|
|
1,535
|
Tax expense on
Earnings from Continuing Operations (d)
|
|
|
|
|
|
|
|
|
317
|
Earnings from
Continuing Operations
|
|
|
|
|
|
|
|
|
$
1,218
|
Diluted Earnings per
Share from Continuing Operations
|
|
|
|
|
|
|
|
|
$
0.69
|
|
The table above
provides additional details regarding the specified items described
on tables titled "Non-GAAP Reconciliation of Financial
Information From Continuing Operations."
|
|
|
a)
|
Acquisition-related
expenses include costs for legal, accounting, tax, and other
services related to business acquisitions, integration costs which
represent incremental costs directly related to integrating the
acquired businesses and include expenditures for consulting,
retention, severance, and the integration of systems, processes and
business activities, fair value adjustments to contingent
consideration related to a business acquisition, and inventory
step-up amortization.
|
b)
|
Restructuring and
cost reduction initiative expenses include severance, outplacement,
inventory write-downs, asset impairments, accelerated depreciation,
and other direct costs associated with specific restructuring plans
and cost reduction initiatives. Restructuring and cost reduction
plans consist of distinct initiatives to streamline operations
including the consolidation and rationalization of business
activities and facilities, workforce reductions, the transfer of
product lines between manufacturing facilities, and the transfer of
other business activities between sites.
|
c)
|
Other (income)
expense, net relates to the acquisition of R&D assets and the
cost associated with the early extinguishment of debt, partially
offset by an increase in fair value of an investment.
|
d)
|
Reflects the net tax
benefit associated with the specified items and excess tax benefits
associated with share-based compensation.
|
Abbott Laboratories
and Subsidiaries
|
Details of Specified
Items
|
First Half Ended June
30, 2017
|
(in millions, except
per share data)
|
(unaudited)
|
|
|
Acquisition or
Divestiture-
related (a)
|
|
Restructuring
and Cost
Reduction
Initiatives (b)
|
|
Intangible
Amortization
|
|
Total
Specifieds
|
Gross
Margin
|
$
844
|
|
$
121
|
|
$
914
|
|
$
1,879
|
R&D
|
(26)
|
|
(29)
|
|
--
|
|
(55)
|
SG&A
|
(486)
|
|
(19)
|
|
--
|
|
(505)
|
Interest expense,
net
|
(19)
|
|
--
|
|
--
|
|
(19)
|
Other (income)
expense, net
|
1,200
|
|
(34)
|
|
--
|
|
1,166
|
Earnings from
Continuing Operations before taxes
|
$
175
|
|
$
203
|
|
$
914
|
|
1,292
|
Tax expense on
Earnings from Continuing Operations (c)
|
|
|
|
|
|
|
9
|
Earnings from
Continuing Operations
|
|
|
|
|
|
|
$
1,283
|
Diluted Earnings per
Share from Continuing Operations
|
|
|
|
|
|
|
$
0.74
|
|
The table above
provides additional details regarding the specified items described
on tables titled "Non-GAAP Reconciliation of Financial Information
From Continuing Operations."
|
|
|
a)
|
Acquisition-related
expenses include bankers' fees and costs for legal, accounting,
tax, and other services related to business acquisitions,
integration costs which represent incremental costs directly
related to integrating the acquired businesses and include
expenditures for consulting, retention, severance, and the
integration of systems, processes and business activities, fair
value adjustments to contingent consideration related to a business
acquisition, and inventory step-up amortization. The specified
items in interest expense include amortization expense associated
with acquisition-related bridge facility fees. Divestiture-related
expenses include incremental costs to separate the divested
businesses as well as bankers' fees and costs for legal,
accounting, tax, and other services related to the
divestitures.
|
b)
|
Restructuring and
cost reduction initiative expenses include severance, outplacement,
inventory write-downs, asset impairments, accelerated depreciation,
and other direct costs associated with specific restructuring plans
and cost reduction initiatives. Restructuring and cost reduction
plans consist of distinct initiatives to streamline operations
including the consolidation and rationalization of business
activities and facilities, workforce reductions, the transfer of
product lines between manufacturing facilities, and the transfer of
other business activities between sites. Any gains related to the
divestiture of a facility as part of a restructuring program are
also included in this category.
|
c)
|
Reflects the net tax
benefit associated with the specified items and excess tax benefits
associated with share-based compensation.
|
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SOURCE Abbott